the existing or current (spot) 1-, 2-, 3-, and 4-year zero coupon Treasury security rates were as follows:

Question

1R1 = 0.30%, 1R2 = 0.90%, 1R3 = 1.30%, 1R4 = 1.45%
Using the unbiased expectations theory, calculate the 1-year forward rates on zero coupon Treasury bonds for years 2, 3, and 4

Answer 1

1R1 = 0.65%, 1R2 = 1.30%, 1R3 = 1.70%, 1R4 = 1.85%.
Using the unbiased expectations theory, calculate the 1-year forward rates on zero coupon Treasury bonds for years 2, 3, and 4