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My Bloomberg terminal shows the simple interest rates One year: 1.430% Two year: 3.788% Three year: 4.926% Four year: 5.720% Five year: 5.967% If the
My Bloomberg terminal shows the simple interest rates One year: 1.430% Two year: 3.788% Three year: 4.926% Four year: 5.720% Five year: 5.967% If the yield curve is formed solely from expectations then the market expects the one year rate one year from now to be
- : 6.201 %
- the one year rate two years from now to be 7.240 %
- the one year rate three years from now to be 8.138 %
- and the one year rate four years from now to be 6.961%
Please tell me how to get to the bolded answers. Thank you so much!
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