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CMBS FINAL COPY STUDY GUIDE 2023 All Possible Questions and Answers with complete solution 
 
Assuming a perfectly efficient debt market, what would be the forward rate during year 6, given the following current spot rates? 
Year: 1 2 3 4 5 6 
Spot rate: .08 .085 .09 .095 .10 .105 
((1+r6)^6/(1+r5)^5) - 1 
2. Explain why, in the absence of transactions costs that spot interest rates should be a geometric average of the imbedded forward interest rates. Explain why, in an efficient market, we woul...
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