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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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