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If the five-year spot rate is 6.1 percent and the four-year spot rate is 5.9 percent, what is the only rate that can be computed? A. The four-year forward rate starting one year from today is 6.9%. B. The one-year forward rate starting four years from today is 7.4%. C. The four-year forward rate starting one year from today is 7.4%. D. The one-year forward rate starting four years from today is 6.9%. |