Question: 4. Forward rates are given in the table. n n-year forward rate 0 f(0,1) : 2.0% 1 f(1,2 : 2.7% 2 $2,3 : 3.7% 3

4. Forward rates are given in the table. n n-year forward

4. Forward rates are given in the table. n n-year forward rate 0 f(0,1) : 2.0% 1 f(1,2 : 2.7% 2 $2,3 : 3.7% 3 $13,4 : 4.9% Find: a) the one-year spot rate b) three-year spot rate 4. Forward rates are given in the table. n n-year forward rate 0 f(0,1) : 2.0% 1 f(1,2 : 2.7% 2 $2,3 : 3.7% 3 $13,4 : 4.9% Find: a) the one-year spot rate b) three-year spot rate

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