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The six-month spot rate is 6%. The one year spot rate is 6.3%. The one-and-one-half spot rate is 6.5%.The two-year spot rate is 6.8%. What
The six-month spot rate is 6%. The one year spot rate is 6.3%. The one-and-one-half spot rate is 6.5%.The two-year spot rate is 6.8%. What is the implied forward rate for the 6-month period starting one year from today? Every rate is a semi-annual APR, and the forward rate should also be expressed as a semi-annual APR.
A. 6.901%
B. 6.600%
C. 7.703%
D. 6.300%
E. 6.500%
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