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Under the pure expectation theory, when 1 year maturity yield 6.0%, 2 years maturity yield 6.2%, 3 years maturity yield 6.4%, 4 years maturity yield
Under the pure expectation theory, when 1 year maturity yield 6.0%, 2 years maturity yield 6.2%, 3 years maturity yield 6.4%, 4 years maturity yield 6.5%, 5 years maturity yield 6.5%, what is the interest on two years security, three years from now, the forward rate: i 3,2)? (Hint: use the forumula (1+i m+n)^(m+n)=(1+i m)^m+(1+ i m,n)^n)
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