Question
Given the following term structure, what is the forward rate of a 3-year treasury bond issued 1 year from now? Please answer in decimal
Given the following term structure, what is the forward rate of a 3-year treasury bond issued 1 year from now? Please answer in decimal format and keep 4 decimal places. No credit will be awarded if your answer is in percentage. Maturity Yield 1 year 2.4% 2 years 3.2% 3 years 3.4% 4 years 3.6% 5 years 3.8%
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