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Consider the following data in the table below. Calculate the one-year forward rate in two years time for Treasury strip. Spot 1-year Spot 2-year Spot

Consider the following data in the table below. Calculate the one-year forward rate in two years time for Treasury strip.


	Spot 1-year	Spot 2-year	Spot 3-year
T-strip	10%	12%	13%
AAA corporate bond	13%	15%	17%

a. 14.04%

b. 21.10%

c. 15.03%

d. 19.25%

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