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Assuming annual compounding, if the 3-year and 4-year spot rates are respectively 4.5% and 6.2%, whats the 1-year forward rate beginning year 3 (3r4)? A.
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Assuming annual compounding, if the 3-year and 4-year spot rates are respectively 4.5% and 6.2%, whats the 1-year forward rate beginning year 3 (3r4)?
A. 1.63%
B. 1.70%
C. 7.93%
D. 9.68%
E. 11.47%
Assuming annual compounding, if the 3-year and 4-year spot rates are respectively 4.5% and 6.2%, whats the 1-year forward rate beginning year 3 (3r4)?
A. 1.63% | ||
B. 1.70% | ||
C. 7.93% | ||
D. 9.68% | ||
E. 11.47% |
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