Question
Consider the following spot interest rates for maturities of one, two, three, and four years. r 1 = 5.6% r 2 = 6.2% r 3
Consider the following spot interest rates for maturities of one, two, three, and four years.
| r1 = 5.6% | r2 = 6.2% | r3 = 6.9% | r4 = 7.7% |
What are the following forward rates, where fk,1 refers to a forward rate beginning in k years and extending for 1 year?
f2,1 ______%
f3,1 _______%
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International Marketing And Export Management
Authors: Gerald Albaum , Alexander Josiassen , Edwin Duerr
8th Edition
1292016922, 978-1292016924
