If the 3-year spot rate is 12% and the 2-year spot rate is 10%, what is the one-year forward rate of interest two years from now? 762 viewsJanuary 7, 2017 0 Darshita6.14K January 7, 2017 0 Comments If the 3-year spot rate is 12% and the 2-year spot rate is 10%, what is the one-year forward rate of interest two years from now? A) 7% B) 1% C) 5% D) Any of the above E) None of the above 0 Answers ActiveVotedNewestOldest 0 Darshita6.14K Posted January 7, 2017 0 Comments Answer: B f = [(1.12^3)/(1.1^2)]-1 = 16.1% You are viewing 1 out of 0 answers, click here to view all answers. Register or Login
