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The current yield curve for default-free zero-coupon bonds is as follows. What are the implied 1 year forward rates? Maturity YTM Forward Rates 1 10.5%
The current yield curve for default-free zero-coupon bonds is as follows.
What are the implied 1 year forward rates?
Maturity | YTM | Forward Rates |
1 | 10.5% |
|
2 | 11.5% |
|
3 | 12.5% |
|
What is the expected two year rate next year?
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