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about te 00s0T Consider the following spot 21. Forward Interest Rates (LO3, CFA8) ties of one, two, three, and four years. owing spot interest rates

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about te 00s0T Consider the following spot 21. Forward Interest Rates (LO3, CFA8) ties of one, two, three, and four years. owing spot interest rates o e r2 = 4.9% r3 = 5.6% r4 = 6.4% What are the following forward rates, where f, refers to a forward rate o in one year and extending for k years? 1,2 1,3 Hint: Use the equation (1 +r)1 + 2(1 + rk+1)k+1 to solve for

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