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(b) Suppose the following current rates from the yield curve have been observed in the market: o70.18 72s 0.16. 40.12 0.10, ando 0.05. Calculate all
(b) Suppose the following current rates from the yield curve have been observed in the market: o70.18 72s 0.16. 40.12 0.10, ando 0.05. Calculate all the forward rates you can from these current rates. [40 marks] (b) Suppose the following current rates from the yield curve have been observed in the market: o70.18 72s 0.16. 40.12 0.10, ando 0.05. Calculate all the forward rates you can from these current rates. [40 marks]
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