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please answer the year 2 forward rate

please answer the year 2 forward rate

Essentials Of Investments
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
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please answer the year 2 forward rate 

On March 11, the existing or current (spot) 1-, 2-, 3-, and 4-year zero-coupon Treasury security rates were as follows: 1R10.608, 1821.258, 1R3 1.658, 1R4 - 1.80% Using the unbiased expectations theory, calculate the 1-year forward rates on zero-coupon Treasury bonds for years 2, 3, and 4 as of March 11. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Answer is complete but not entirely correct. Forward rates 1.85 2.45 2:25 Years 2 3 4 % % %
Transcribed Image Text:On March 11, the existing or current (spot) 1-, 2-, 3-, and 4-year zero-coupon Treasury security rates were as follows: 1R10.608, 1821.258, 1R3 1.658, 1R4 - 1.80% Using the unbiased expectations theory, calculate the 1-year forward rates on zero-coupon Treasury bonds for years 2, 3, and 4 as of March 11. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Answer is complete but not entirely correct. Forward rates 1.85 2.45 2:25 Years 2 3 4 % % %
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