Question
Use the following to answer the next three questions. Years to Maturity Yield 1 .02 2 .05 3 .03 4 .06 5 .08 1. Find
Use the following to answer the next three questions.
Years to Maturity | Yield |
1 | .02 |
2 | .05 |
3 | .03 |
4 | .06 |
5 | .08 |
1. Find the market's forecast for one year rates, one year from now. Round intermediate steps to four decimals.
a) | .0809 | |
b) | .0381 | |
c) | .05 | |
d) | None of the above |
2. Find the market's forecast for two year rates, three years from today. Round intermediate steps and your final answer to four decimals. Enter you answer in decimal format (EX: .XXXX).
3. Find the market's forecast for four year rates, one year from today. Round intermediate steps and your final answer to four decimals. Enter your answer in decimal format (EX: .XXXX).
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