Question $4$

Table: $307$: Forward rates

The above semiannual compounded forward rates were quoted at Bestina Financial this

morning.

Find the forward rate from year $1$ to year $3\mathrm{.}5$ ie $f(0,1,3\mathrm{.}5).$ Remember this is an annual rate.

Answer: Enter your answer as a percent rounded to $4$ decimal places. For example, a decimal

answer of $0\mathrm{.}123456789$ should be entered as: $12\mathrm{.}345$