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b . Find and write down the spot interest rates for one - year bond ( bill ) and two - year bond from the
b Find and write down the spot interest rates for oneyear bond bill and twoyear bond from the yield curve.
c Calculate oneyear implied forward interest rate starting from one year from now. For example, assuming you work this question on June calculate a
forward rate, starting from June a year later, to June implied in the yield curve.
d Find a yield curve on June by changing date on topleft of the same website and write down the spot interest rates for oneyear bond bill and twoyear bond from the yield curve. Calculate oneyear implied forward interest rate starting from June
e Compare the spot interest rate for oneyear bond bill you found in current yield curve in part b with the implied forward rate calculated in part d using the yield curve on June Are the two numbers the same? If not, explain why the two numbers are different.
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