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Consider the following spot interest rates for maturities of one, two, three, and four years. r_1 = 6.3% r_2 = 6.7% r_3 = 7.4% r_4
Consider the following spot interest rates for maturities of one, two, three, and four years. r_1 = 6.3% r_2 = 6.7% r_3 = 7.4% r_4 = 8.2% What are the following forward rates, 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. Omit the "%" sign in your response.) f_1, 1 % f_1, 2 % f_1, 3 %
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