You are given the following spot rates: 1-year spot rate S0,1 = 4% 2-year spot rate S0,2 = 4.5% 3-year spot rate S0,3 =
Posted: Thu May 19, 2022 12:23 am
You are given the following spot rates:
1-year spot rate S0,1 = 4%
2-year spot rate S0,2 = 4.5%
3-year spot rate S0,3 = 5.5%
4-year spot rate S0,4 = 7%
Calculate the forward rate from year 2 to year 4
(F2,4).
1-year spot rate S0,1 = 4%
2-year spot rate S0,2 = 4.5%
3-year spot rate S0,3 = 5.5%
4-year spot rate S0,4 = 7%
Calculate the forward rate from year 2 to year 4
(F2,4).