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The YTMs on benchmark one-year, two-year, and three-year annual pay bonds that are priced at par are listed in the table below. Bond Yield 1-year
The YTMs on benchmark one-year, two-year, and three-year annual pay bonds that are priced at par are listed in the table below.
Bond | Yield |
1-year | 1.87 |
2-year | 2.75 |
3-year | 4.15 |
What is the 1 year implied forward rate 2 years from now, 2y1y?
The answer is 7.21 how do I find this?
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