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The strip yield curve today looks as follows (all yields are APRs with semi-annual compounding): 1-year strip has a yield to maturity of 1.5%, 2-year
The strip yield curve today looks as follows (all yields are APRs with semi-annual compounding): 1-year strip has a yield to maturity of 1.5%, 2-year strip has a yield to maturity of 2%, 3-year strip has a yield to maturity of 3%, 4-year strip has a yield to maturity of 4% What is forward rate you can lock in today (expressed as an APR with sem-annual compounding) for the 1-year period starting in 3 years time? O A. 1.5% B. 3% C. 1% OD. -6.6% E. 7.0%
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