The following table shows yields to maturity on U.S. Treasury securities as of January 1, 2018: Term to Maturity Yield to Maturity 1 year 3.30% 2 years 4.20% 3 years 4.80% 5.20% 6.00% 6.70% 4 years 5 years 10 years Based on the data in the table, calculate the implied forward one-year rate of interest at January 1, 2021. Do not round intermediate calculations. Round your answer to two decimal places.
The following table shows yields to maturity on U.S. Treasury securities as of January 1, 2018: Term to Maturity Yield to Maturity 1 year 3.30% 2 years 4.20% 3 years 4.80% 5.20% 6.00% 6.70% 4 years 5 years 10 years Based on the data in the table, calculate the implied forward one-year rate of interest at January 1, 2021. Do not round intermediate calculations. Round your answer to two decimal places.
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:Problem 13-04
The following table shows yields to maturity on U.S. Treasury securities as of January 1, 2018:
Yield to Maturity
Term to Maturity
1 year
3.30%
2 years
4.20%
3 years
4.80%
4 years
5 years
10 years
5.20%
6.00%
6.70%
Based on the data in the table, calculate the implied forward one-year rate of interest at January 1, 2021. Do not round intermediate calculations. Round your
answer to two decimal places.
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