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Consider the following US treasury rate table expressed in percentage. Maturity t Yield R(0,t) Yesterday Last Week Last Month 6 Month 2.65 2.35 1.85 1.55
Consider the following US treasury rate table expressed in percentage.
Maturity t | Yield R(0,t) | Yesterday | Last Week | Last Month |
6 Month | 2.65 | 2.35 | 1.85 | 1.55 |
1 Year | 2.75 | 2.70 | 2.20 | 1.90 |
2 Year | 2.25 | 2.90 | 2.40 | 2.10 |
3 Year | 5.15 | 4.65 | 4.15 | 3.85 |
5 Year | 4.80 | 4.70 | 2.20 | 3.90 |
10 Year | 5.00 | 4.90 | 4.40 | 4.10 |
30 Year | 5.50 | 5.30 | 4.80 | 4.50 |
The forward rate F(2,1) is the rate that applies to borrowing or lending starting in 2 years from today for an additional year. F(2,1) today is equal to: (Answer in percentage rounded to the second decimal place)
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