Question
Suppose that you have the following interest rates: Maturity (Years) Spot rate Forward rate Expected future single year spot rate 1 8.00 -- -- 2
Suppose that you have the following interest rates:
| Maturity (Years) | Spot rate | Forward rate | Expected future single year spot rate |
| 1 | 8.00 | -- | -- |
| 2 | 8.75 |
|
|
| 3 | 9.33 |
|
|
| 4 | 9.79 |
|
|
| 5 | 10.13 |
|
|
Plot the yield curve based on these rates.
Compute the forward rate and the expected future single period spot rate.
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Finance Your Business Secure Funding To Start Run And Grow Your Business
Authors: The Staff Of Entrepreneur Media
1st Edition
1599185970, 978-1599185972
