Question
Consider the following spot interest rates for maturities of one, two, three, and four years. r1 = 4.7% r2 = 5.2% r3 = 5.9% r4
Consider the following spot interest rates for maturities of one, two, three, and four years. r1 = 4.7% r2 = 5.2% r3 = 5.9% r4 = 6.9%
What are the following forward rates, where fk,1 refers to a forward rate beginning in k years and extending for 1 year? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)
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Investments An Introduction
Authors: Herbert B Mayo
11th Edition
1133936520, 9781133936527
