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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. 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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