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risk-free interest rates is as followed for these years: year 1 : 5%, year 2 : 5.6%, year 3 : 6.4%, year 5: 8.2% ,
risk-free interest rates is as followed for these years:
year 1 : 5%, year 2 : 5.6%, year 3 : 6.4%, year 5: 8.2% , year 10: 12.6%
1. What is the present value of the risk free investment that result in 4000 in 1 year and 6000 in 3 years.
2. Calculate the forward rate for year 3.
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