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Consider the following US treasury rates table. Maturity Yield Yesterday Last Week Last Month 6 Month 0.02 0.02 0.02 0.09 1 Year 0.23 0.23 0.22
Consider the following US treasury rates table.
Maturity | Yield | Yesterday | Last Week | Last Month |
6 Month | 0.02 | 0.02 | 0.02 | 0.09 |
1 Year | 0.23 | 0.23 | 0.22 | 0.23 |
2 Year | 0.73 | 0.7 | 0.71 | 0.71 |
3 Year | 1.04 | 1.03 | 0.99 | 1.07 |
5 Year | 1.51 | 1.51 | 1.47 | 1.59 |
10 Year | 2.18 | 2.19 | 2.13 | 2.2 |
30 Year | 2.95 | 2.95 | 2.89 | 2.84 |
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) is to:
a)1.663%
b)2.95%
c)1.04%
d)0.73%
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