Question
Consider the following spot interest rates for maturities of one, two, three, and four years. r_1 =4.1%; r_2 = 5.2%; r_3 = 5.9%; r_4 =
Consider the following spot interest rates for maturities of one, two, three, and four years.
r_1 =4.1%; r_2 = 5.2%; r_3 = 5.9%; r_4 = 6.5%
What is thepercentageforward rate f_(1,3), where f_(1, k) refers to a forward rate for the period beginning in one year and extending for k years?
(Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)
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Financial Accounting and Reporting
Authors: Barry Elliott, Jamie Elliott
14th Edition
978-0273744535, 273744445, 273744534, 978-0273744443
