forward rates an analyst gathered the following spot rates 664322
Forward Rates An analyst gathered the following spot rates:
|
Time (years) |
Annual Spot Rate |
|
1 |
15.00% |
|
2 |
12.5 |
|
3 |
10 |
|
4 |
7.5 |
The one year forward rate two years from now is closest to
a. _4.91 percent
b. 5.17 percent
c. 10.05 percent
d. 7.5 percent