Suppose the spot rates for 1 and 2 years are s_1 = 6.3\%s

Question

1
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=6.3% and s_2 = 6.9\%s
2
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=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
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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.

Answer 1

6.2