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Problem in forecasting interest rates based on unbiased expectations theory. These are spot rates today (Oct. 9, 2020) R1= 12%, R2=13%, R3=14%, R4=15% A. Given

Problem in forecasting interest rates based on unbiased expectations theory. These are spot rates today (Oct. 9, 2020)

R1= 12%, R2=13%, R3=14%, R4=15%

A. Given this information calculate one year forward ratefor a one yr loan beginning 10/9/21 and ending 10/9/22.

B. calculate two year forward ratefor a one yr loan beginning 10/9/22 and ending 10/9/23.

C. calculate three year forward ratefor a one yr loan beginning 10/9/23 and ending 10/9/24.

D. calculate two year forward ratefor a two yr loan beginning 10/9/22 and ending 10/9/24.

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