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

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Consider the following US treasury rate table expressed in percentage. Maturity Yield Yesterday Last Week Last Month t R(0,t) 6 Month 2.65 2.35 1.55 1.85 2.20 1 Year 2.75 2.70 1.90 2 Year 2.90 2.40 3.20 5.15 2.10 3.85 3 Year 4.65 4.80 4.70 3.90 5 Year 10 Year 4.15 2.20 4.40 4.80 5.00 4.10 4.90 5.30 30 Year 5.50 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 with two digits decimal accuracy. Example 10.34

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