Homework Answers
Answer:
2 year annual rate in 3 years = [(1 + annual interest rate of 5 year maturity) 5 / ((1 + annual interest rate of 3 year maturity) 3] 1/2 - 1
= ((1 + 3.29%)5 / (1 + 2.75%) 3) 1/2 - 1
= 4.10533% or 4.11%
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please solve for (c), the answer is 0.3020
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9-18
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9-18
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