Question
Suppose the spot rates for 1 and 2 years are s_1 = 6.3\%s
1
=6.3% and s_2 = 6.9\%s
2
=6.9% with annual compounding. Recall that in this course interest rates are always quoted on an annual basis unless otherwise specified. What is the forward rate, f_{1,2}f
1,2
assuming annual compounding?
Please submit your answer as a percentage rounded to one decimal place so, for example, if your answer is 8.789% then you should submit an answer of 8.8.
1
=6.3% and s_2 = 6.9\%s
2
=6.9% with annual compounding. Recall that in this course interest rates are always quoted on an annual basis unless otherwise specified. What is the forward rate, f_{1,2}f
1,2
assuming annual compounding?
Please submit your answer as a percentage rounded to one decimal place so, for example, if your answer is 8.789% then you should submit an answer of 8.8.
Answers
Dada
6.2