Forward ratesa the one-year and two-year zero rates are 1, Ask an Expert

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Forward rates

(a) The one-year and two-year zero rates are 1% and 2% respectively. What is the one-year forward one-year rate (that is, f11)? Assume all rates are annually compounded.

(b) If the two-year forward one-year rate ( f21) is 3%, what is the three-year zero rate?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91999403

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