Copy of According to the yields below, what is the 2-year forward rate 3 years from now? Answer as a percent. round to 4 decimal places. 1 yr 2 yr 3 yr 4 yr 5 yr 1.75 3.94 3.71 3.82 3.33
Copy of According to the yields below, what is the 2-year forward rate 3 years from now? Answer as a percent. round to 4 decimal places. 1 yr 2 yr 3 yr 4 yr 5 yr 1.75 3.94 3.71 3.82 3.33
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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
Transcribed Image Text:QUESTION 11
Copy of
According to the yields below, what is the 2-year forward rate 3 years from now?
Answer as a percent.
round to 4 decimal places.
2 yr
3.94
1 yr
1.75
3 yr
3.71
4 yr 5 yr
3.82
3.33
QUESTION 12
The yield on a 6-year T bond is 3.91%. The yield on a 16-year T bond is 3.67%. What is the forward rate between the two bonds?
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