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Consider the following spot interest rates for maturities of one, two, three, and four years. r1 = 5.5% r2 = 5.9% r3 = 6.6% r4
Consider the following spot interest rates for maturities of one, two, three, and four years. r1 = 5.5% r2 = 5.9% r3 = 6.6% r4 = 7.4% What are the following forward rates, where f1, k refers to a forward rate for the period beginning in one year and extending for k years? (Round your answer to 2 decimal places. Omit the "%" sign in your response.)
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