The 6-month Treasury bill spot rate is 4.60%, and the 1-year Treasury bill spot rate is 4.44% What is the impled 6-month forward rate for six months from now? Hint These are annual rates, so you need to convert to semiannual rates (ie divide by 2) For your final enswer, you need to convert back to an annual rate (e multiply by 21 Please report your answer in percent (annualized) to two decimal places. For instance, 3.75% would be 375

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
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2:30
The 6-month Treasury bill spot rate is 4 60%, and the 1-year Treasury bill spot rate is 4.44% What is the implied 6-month forward rate for six months from now?
Hint: These are annual rates, so you need to convert to semiannual rates (i e divide by 2) For your final answer, you need to convert back to an annual rate (e multiply by 21
Please report your answer in percent (annualized) to two decimal places. For instance, 3.75% would be 375
Numeric Response
Transcribed Image Text:2:30 The 6-month Treasury bill spot rate is 4 60%, and the 1-year Treasury bill spot rate is 4.44% What is the implied 6-month forward rate for six months from now? Hint: These are annual rates, so you need to convert to semiannual rates (i e divide by 2) For your final answer, you need to convert back to an annual rate (e multiply by 21 Please report your answer in percent (annualized) to two decimal places. For instance, 3.75% would be 375 Numeric Response
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