Question: Answer the questions using the table of Spot Rates Below: 1 year spot: 0.95% 2 year spot: 1.75% 3 year spot: 1.85% 5 year spot:

Answer the questions using the table of Spot Rates Below:

1 year spot:

0.95%

2 year spot:

1.75%

3 year spot:

1.85%

5 year spot:

1.95%

10-year spot:

2.25%

15-year spot:

2.75%

  1. If the 2-year rate, 2-years forward is 1.90%, what is the 4-year spot rate?
  1. 0.902%
  1. 1.825%
  1. 3.690%

  1. 1.690%

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