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Using the data in following table, calculate the differences between one-year realized rate and one-year forward rate ( 1 f 2 ) and complete the
Using the data in following table, calculate the differences between one-year realized rate and one-year forward rate (1f2) and complete the following table.
1f2 |
|
|
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Year | Realized Rate | Forward Rate | Difference |
1991 | 5.81% |
|
|
1992 | 3.26% |
|
|
1993 | 3.40% |
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|
1994 | 5.43% |
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