If the spot rate for two years is 5% and the spot rate for three years is 7%, what is the forward rate for the period fr

Business, Finance, Economics, Accounting, Operations Management, Computer Science, Electrical Engineering, Mechanical Engineering, Civil Engineering, Chemical Engineering, Algebra, Precalculus, Statistics and Probabilty, Advanced Math, Physics, Chemistry, Biology, Nursing, Psychology, Certifications, Tests, Prep, and more.
Post Reply
answerhappygod
Site Admin
Posts: 899603
Joined: Mon Aug 02, 2021 8:13 am

If the spot rate for two years is 5% and the spot rate for three years is 7%, what is the forward rate for the period fr

Post by answerhappygod »

If the spot rate for two years is 5% and the spot rate for three
years is 7%, what is the forward rate for the period from two year
to three years? All rates are continuously compound. Group of
answer choices 10% 11% 12% 13% 14%
Kindly provide the formula and concept used
Do no copy from answers.
Join a community of subject matter experts. Register for FREE to view solutions, replies, and use search function. Request answer by replying!
Post Reply