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Consider the following spot interest rates for maturities of one, two, three, and four years. 79 = 5.2% 2 = 5.6% 13 = 6.3% 14
Consider the following spot interest rates for maturities of one, two, three, and four years. 79 = 5.2% 2 = 5.6% 13 = 6.3% 14 = 7.1% What are the following forward rates, where f1, 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.) 6.00% f1,3
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