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Basic Question 5 of 13
Given the spot and forward rates r(1) = 5%, f(1,1) = 5.5%, and f(2,1) = 6%, calculate r(2).
B. 5.25%
C. 5.35%
A. 5.15%
B. 5.25%
C. 5.35%
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I am using your study notes and I know of at least 5 other friends of mine who used it and passed the exam last Dec. Keep up your great work!
Barnes
Learning Outcome Statements
describe relationships among spot rates, forward rates, yield to maturity, expected and realized returns on bonds, and the shape of the yield curve;
describe how zero-coupon rates (spot rates) may be obtained from the par curve by bootstrapping;
CFA® 2025 Level II Curriculum, Volume 4, Module 26.