The U.S. Treasury Yield (rates are in percent %) Curve for 2/24/21 is given below. The shape of the Yield Curve also tells us something about expectations for future interest rates. 1 MO 2 MO Date 2/24/2021 3 Mo GMO 1 YT SYT 20 YT 2YT 0.12 5 Yr 0.03 4 Yr 0.43 BYT 0.82 7 YT 1.02 10 YT 1.38 30 Yr 2.24 2.07 Assuming today is 2/24/21, using Geometric Means, What is the Implied Forward interest rate for a one-year maturity government bond, two-vears from today (fi)? (1+oR2)2 = (1+0R1) (1+ifi) then, solving for ifi, = (1+R,)? (1+,R) |-1= af (1 +0.001221 -1= (1 +0.0008) Also, what is the Implied Forward interest rate for a two-year maturity government bond, three-years from today (fe)? (1+oRs) * = (1+0R3) (1+ 3f2) then, solving for 3f2, af (1+R) (1+R2) -1 = 312= Remember, in general, implied Forward interest rate for a N-year maturity government bond, t-years from Today is estimated by: 1/N (1+,Rx+x))." )(+27 fv = -1 (1+R)' The U.S. Treasury Yield (rates are in percent %) Curve for 2/24/21 is given below. The shape of the Yield Curve also tells us something about expectations for future interest rates. 1 MO 2 MO Date 2/24/2021 3 Mo GMO 1 YT SYT 20 YT 2YT 0.12 5 Yr 0.03 4 Yr 0.43 BYT 0.82 7 YT 1.02 10 YT 1.38 30 Yr 2.24 2.07 Assuming today is 2/24/21, using Geometric Means, What is the Implied Forward interest rate for a one-year maturity government bond, two-vears from today (fi)? (1+oR2)2 = (1+0R1) (1+ifi) then, solving for ifi, = (1+R,)? (1+,R) |-1= af (1 +0.001221 -1= (1 +0.0008) Also, what is the Implied Forward interest rate for a two-year maturity government bond, three-years from today (fe)? (1+oRs) * = (1+0R3) (1+ 3f2) then, solving for 3f2, af (1+R) (1+R2) -1 = 312= Remember, in general, implied Forward interest rate for a N-year maturity government bond, t-years from Today is estimated by: 1/N (1+,Rx+x))." )(+27 fv = -1 (1+R)