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Using the following data to answer Question 1 and 2. Note that round to the nearest hundredths. Maturity (Years) STRIPS Price Spot Rate Forward Rate
Using the following data to answer Question 1 and 2. Note that round to the nearest hundredths.
Maturity (Years) | STRIPS Price | Spot Rate | Forward Rate |
0.5 | 98.7654 | 2.50% | 2.50% |
1.0 | 97.0662 | 3.00% | 3.50% |
1.5 | 95.2652 | 3.26% | 3.78% |
2.0 | 93.2775 | % | % |
Find Spot and Forward Rate for year 2
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