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3.87% One-year rate = Two-year rate = Three-year rate = 4.73% 5.23% 1) Calculate the one-year forward rate in one year (5 pts) (A) 4.86%

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3.87% One-year rate = Two-year rate = Three-year rate = 4.73% 5.23% 1) Calculate the one-year forward rate in one year (5 pts) (A) 4.86% (B) 5.04% [C) 5.44 % (D) 5.6% 2) Calculate the two-year forward rate in one year (5 pts) (A) 6.82% (B) 6.18% (C) 6.38 % (D) 5.92%

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