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available at 4.45%/5.04%. At the same time the current spot interest rates on this market are as follows: 6 months spot rates - 4,62%/4,82% 9

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available at 4.45%/5.04%. At the same time the current spot interest rates on this market are as follows: 6 months spot rates - 4,62%/4,82% 9 months spot rates 4,65%/4,85% a) Calculate the current spot three-month rate for loans on this market (time convention is 30/360) b) Describe for how long the loan is granted or the deposit accepted in the described forward-forward contract. When does it start and finish? c) If the investor wants to take out a loan in the analysed forward-forward contract, describe what operations and when the bank carries out to provide the client with ff " 3v6 " loan

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