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Calculate spot rate and one-year forward rate Assume the following are the Yield to Maturity of some risk-free bond Period Year to Maturity 0.5 1.0

Calculate spot rate and one-year forward rate

Assume the following are the Yield to Maturity of some risk-free bond Period Year to Maturity 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 Yield To Maturity(BEY) 5.0 5.2 5.5 5.8 6.0 6.2 6.8 7.0 Coupon (%) 5.5 5.6 6.0 6.2 6.5 7.0 Price (%) 100 99.63 100 100 99.45 100 Use the table to answer these questions: Calculate spot rate and one-year forward rate

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