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You are given the following nominal rates, compounded semi-annually, taken from a yield curve: 1-year rate: 3%; 2-year rate = 3.25%; 3-year rate = 3.50%;
You are given the following nominal rates, compounded semi-annually, taken from a yield curve: 1-year rate: 3%; 2-year rate = 3.25%; 3-year rate = 3.50%; 5-year rate = 4%. Based on these yield rates, what do you predict will be the 3-year rate. 2 years from now? O A 4.50% OB 5.13% C. 4.33% OD 4.75%
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