Consider the following spot interest rates for maturities of one, two, three, and four years. r1=2.93%...

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Consider the following spot interest rates for maturities of one, two, three, and four years. r1=2.93%...

Consider the following spot interest rates for maturities of one, two, three, and four years. r1=2.93% r2=3.71% r3=4.27% r4=3.74% What is the three year forward rate one year from now (in percent)? Use the exact formula. Answer to two decimals, carry intermediate calcs. to four decimals.

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Answer 1

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3 year forward rate one year from now = (1+r4)⁴/(1+r1) -1 = (1+3.74%)⁴/(1+2.93%) -1 = 12.52%

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Question 8 1 pts Consider the following spot interest rates for maturities of one, two, three,...