Question
The government benchmark bond spot rates, for annual compounding bonds is shown below: Year Spot rate (%) 1 5.90 2 6.40 3 6.60 4 6.90
The government benchmark bond spot rates, for annual compounding bonds is shown below:
| Year | Spot rate (%) |
| 1 | 5.90 |
| 2 | 6.40 |
| 3 | 6.60 |
| 4 | 6.90 |
| 5 | 7.30 |
What is the closest 2-year forward rate 2-years from period zero (IFR2,2)?
Group of answer choices
IFR2,2 6.00%
6.00% < IFR2,2 6.50%
6.50% < IFR2,2 7.00%
7.00% < IFR2,2
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The Ages Of The Investor A Critical Look At Life Cycle Investing
Authors: William J Bernstein
1st Edition
1478227133, 978-1478227137
