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Suppose you observe the following partial Treasury spot rate curve: Term Spot Rate 6-month spot rate 1.0% 1-year spot rate 1.2% 18-month spot rate 1.6%
Suppose you observe the following partial Treasury spot rate curve:
Term | Spot Rate |
6-month spot rate | 1.0% |
1-year spot rate | 1.2% |
18-month spot rate | 1.6% |
2-year spot rate | 2.0% |
30-month spot rate | 2.2% |
3-year spot rate | 2.6% |
Based upon this data, the 30-month forward rate 6 months from today is closest to:
A | 1.461%. |
B | 2.306%. |
C | 2.922%. |
D | 4.612%. |
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