Question
Consider the following spot interest rates for maturities of one, two, three, and four years. r 1 = 4.0% r 2 = 4.5% r 3
| Consider the following spot interest rates for maturities of one, two, three, and four years. |
| r1 = 4.0% r2 = 4.5% r3 = 5.2% r4 = 6.0% |
| What are the following forward rates, where fk,1 refers to a forward rate beginning in k years and extending for 1 year? (Round your answer to 2 decimal places. Omit the "%" sign in your response.) |
| f2,1 | % |
| f3,1 | % |
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Analysis for Financial Management
Authors: Robert C. Higgins
10th edition
007803468X, 978-0078034688
