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MMLU-Pro / 448 / Given the following spot rates:

Problem

Answer published by the source. Consult the official source to check your work against its answer.

question

Given the following spot rates:
1-year spot rate: 5%;
2-year spot rate: 6%.
 Determine the one-year forward rate (between 0 and 1) one year from today.

category

business

options

  1. 0.070095
  2. 0.090095
  3. 0.055095
  4. 0.080095
  5. 0.060095
  6. 0.065095
  7. 0.040095
  8. 0.050095
  9. 0.075095
  10. 0.085095

src

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