Question
The following table shows yields to maturity on U.S. Treasury securities as of January 1, 2018: Term to Maturity Yield to Maturity 1 year 3.00%
The following table shows yields to maturity on U.S. Treasury securities as of January 1, 2018:
| Term to Maturity | Yield to Maturity | |
| 1 | year | 3.00% |
| 2 | years | 4.00% |
| 3 | years | 4.80% |
| 4 | years | 5.30% |
| 5 | years | 5.80% |
| 10 | years | 6.40% |
Based on the data in the table, calculate the implied forward one-year rate of interest at January 1, 2021. Do not round intermediate calculations. Round your answer to two decimal places.
%
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Intermediate Accounting
Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas
9th Edition
125972266X, 9781259722660
