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Question 4 You are given the following term structure of spot interest rates: Term (in Years) Spot Interest Rate 1 7% 2 8% 3 9%

Question 4 You are given the following term structure of spot interest rates: Term (in Years) Spot Interest Rate 1 7% 2 8% 3 9% What is the one-year forward rate beginning two-years from now? (a) 8.03% (b) 9.03% (c) 10.03% (d) 11.03% (e) 12.03%

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