1. 

   Suppose that the spot rate E is equal to 1. What is the forward rate F at 3 months?

   4 Points

2. 1.005

3. 1.01

4. 0.985

5. 0.995

Term Structure of Interest Rates 6% 4% 2.5% 2% 1.5% 3 months months 4 6 months Term Structure of Interest Rates 6% 4% 2.5% 2% 1.5% 3 months months 4 6 months