Question
Actually you have the following term structure of spot rates on the market Time(weeks) Interest rate 1 1.5% 2 1.8% 3 2.1% 4 2.2% A)Calculate
Actually you have the following term structure of spot rates on the market
| Time(weeks) | Interest rate |
| 1 | 1.5% |
| 2 | 1.8% |
| 3 | 2.1% |
| 4 | 2.2% |
A)Calculate two chosen forward rates(according to expectation theory) using compound interest rate method
B) If possible calculate (using simple interest rate method) the forward rate that starts in one week and three weeks.If not possible comment why
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Climate Finance Theory And Practice
Authors: Anil Markandya, Ibon Galarraga, Dirk Rübbelke
1st Edition
9814641804, 978-9814641807
