Consider the following: today's interest rate for a 12-year bond is 7%; today's interest rate for a 4-year bond is 4%; t

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answerhappygod
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Consider the following: today's interest rate for a 12-year bond is 7%; today's interest rate for a 4-year bond is 4%; t

Post by answerhappygod »

Consider the following: today's interest rate for a 12-year bond
is 7%; today's interest rate for a 4-year bond is 4%; the interest
rate for a 4-year bond i,expected in 4 years s 5%. Find the
interest rate for a 4-year bond expected in 8 years. The interest
rate on the 12 year bond carries a .5% liquidity premium. Make sure
to express your answers as a percentage. Round your answers to the
nearest 100th decimal point.
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