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

 

 r r r r 

 

What are the following forward rates, where fk refers to a forward rate for the period beginning in one year and extending for k years?

Note: Do not round intermediate calculations. Enter your answers as a percent rounded to decimal places.

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Here are the calculations for the forward rates f12 1 r2 1 r... View the full answer