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Consider the following market information: Maturity/Time Par Rates Spot Rates 1-yr Forward Rates 1 2.500% ? ? 2 2.993% ? 3.503% 3 3.477% ? 4.506%

Consider the following market information:

Maturity/Time

Par Rates

Spot Rates

1-yr Forward Rates

1

2.500%

?

?

2

2.993%

?

3.503%

3

3.477%

?

4.506%

What is the one-year spot rate?

2.578%

2.500%

2.993%

2.832%

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Previous Question Next Question

Maturity/Time	Par Rates	Spot Rates	1-yr Forward Rates
1	2.500%	?	?
2	2.993%	?	3.503%
3	3.477%	?	4.506%