Question: Following is the current yield to maturity on Treasury bills of various maturities: Time to Maturity Yield Months % 1 .......... 5.0 3 .......... 5.2

Following is the current yield to on Treasury bills of various maturities:
Time to Yield
Months %
1 .......... 5.0
3 .......... 5.2
6 .......... 5.4
9 .......... 5.8
Assuming monthly compounding, what should the forward interest rate of a three-month T-bill be if it is to be delivered at the end of three months? What if it is to be delivered at the end of six months?

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