Question
if the 1 year spot rate quoted today is 3% and the 2 year spot rate quoted today is 6.5% based on the expectations theory,
if the 1 year spot rate quoted today is 3% and the 2 year spot rate quoted today is 6.5% based on the expectations theory, what is the 1 year forward rate one year from today?
15%
6%
8%
10%
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Focus On Personal Finance
Authors: Jack R. Kapoor, Les R. Dlabay Professor, Robert J. Hughes, Melissa Hart
5th Edition
0077861744, 978-0077861742
