3:

Consider the following spot rate curve:

• 6-month spot rate: 6%.
• 12-month spot rate: 10%.
• 18-month spot rate: 13%.

What is the forward rate for a one-year zero coupon bond issued 6 months from today? Equivalently, the question asks for f₂¹, where 1 time period consists of 6 months.

Assume semi-annual compounding. Round your answer to 4 decimal places. For example if your answer is 3.205%, then please write down 0.0321.