Question
Suppose that zero interest rates with continuous compounding are as follows: Maturity( years) Rate (% per annum) 1 3..5 2 4.0 3 4.2 4 4.6
Suppose that zero interest rates with continuous compounding are as follows:
| Maturity( years) | Rate (% per annum) |
| 1 | 3..5 |
| 2 | 4.0 |
| 3 | 4.2 |
| 4 | 4.6 |
| 5 | 5.0 |
What is the one year forward interest rate for the second year? Please enter your answer as a number rounded to one decimal place (e.g., enter 6.0 to indicate 6.0%).
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Fooled By Randomness The Hidden Role Of Chance In Life And In The Markets
Authors: Nassim Nicholas Taleb
1st Edition
1400067936,1588367673
