Question
Year (n) Zero rate for an n-year investment (% per annum) Forward rate for nth year (% per annum) 1 2.3 2 3.5 4.8 3
| Year (n) | Zero rate for an n-year investment (% per annum) | Forward rate for nth year (% per annum) |
| 1 | 2.3 |
|
| 2 | 3.5 | 4.8 |
| 3 | 4.7 | 5.3 |
| 4 | 5.8 | 6.4 |
| 5 | 6.9 | 7.2 |
Calculate the forward interest rates for the second, third, fourth, and fifth years
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Financial Management Theory And Practice
Authors: Prasanna Chandra
9th Edition
9339222571, 978-9339222574
