Question
Assume that as of today the one-year annualized rate of a security is 4.0%, the two-year rate is 6.0%, and the three-year rate is 7.0%.
Assume that as of today the one-year annualized rate of a security is 4.0%, the two-year rate is 6.0%, and the three-year rate is 7.0%. Find the estimate of t+2r1, a one-year forward rate two years from now
Using the information provided in question 3, estimate t+1r2, the two-year forward rate one year from now. .
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HBR Guide To Finance Basics For Managers
Authors: Harvard Business Review
1st Edition
1422187306, 978-1422187302
