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Question
If the spot interest rate on a prime-rated one-month CD is 6 percent today and the market rate on a two-month maturity prime-rated CD is 7 percent today, the implied forward rate on a one-month CD to be delivered one month from today is
A. 9 percent.
B. 11 percent.
C. 18 percent.
D. 10 percent.
E. 8 percent.
Answer
This answer is hidden. It contains 1 characters.
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