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Consider the following US treasury rate table expressed in percentage. Maturity Yield t R(0,t) Yesterday Last Week Last Month 6 Month 2.65 2.35 1.85 1.55

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Consider the following US treasury rate table expressed in percentage. Maturity Yield t 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 2.85 2.90 2.40 2.10 3 Year 4.85 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 4.50 4.80 5.30 5.50 30 Year 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 with two digits decimal accuracy. Example 10.34

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