The current forward curve is (0.5%,1%,1.08%,0.7%), where the first value is a one year spot rate and

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The current forward curve is (0.5%,1%,1.08%,0.7%), where the first value is a one year spot rate and the following three numbers are the one year forward rates. What is the discount factor of the cash flow paid 4 years from today?

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Essentials of Investments

ISBN: 978-0078034695

9th edition

Authors: Zvi Bodie, Alex Kane, Alan Marcus

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Posted Date: Apr 28, 2021 04:01 PM

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The current forward curve is (0.5%,1%,1.08%,0.7%), where the first value is a one year spot rate and

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