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Today, you observe the following spot rates: Maturity (years) Spot rate 0.5 3.30% 1 4.10% 1.5 5.20% 2 5.90% (All rates are annualized on a
Today, you observe the following spot rates: Maturity (years) Spot rate 0.5 3.30% 1 4.10% 1.5 5.20% 2 5.90% (All rates are annualized on a semi-annual bond equivalent yield basis and so should be your answers) What is the 1-year rate the market expects six months from now? Enter the result in percentage points (For example, if you find 10.00% or 0.1, write 10 as the answer), round your answer to 2 decimal points.
what is the 6-month rate the market expects six months from now?
what is the 6-month rate the market expects one year from now?
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