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The stated annual spot rate are as follows but compounded on a semi-annual basis: Maturity Yield 1 year 2.548% 2 years 2.983% 3 years 2.891%

  1. The stated annual spot rate are as follows but compounded on a semi-annual basis:

Maturity

Yield

1 year

2.548%

2 years

2.983%

3 years

2.891%

Calculate the rate for these periods:

  1. forward rate for 1-year issued 1 year from today
  2. forward rate for 1-year issued 2 years from today

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