Question: Can you write it down on paper instead of doing it in excel? Assume the following Treasury spot rates (compounded annually): Period 1 2 3

Can you write it down on paper instead of doing it in excel?

Can you write it down on paper instead of doing it

Assume the following Treasury spot rates (compounded annually): Period 1 2 3 4 5 6 7 8 Years to maturity 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 Spot rate (%) 5.0 5.4 5.8 6.4 7.0 7.2 7.4 7.8 Compute the following forward rates: a) the 6-month forward rate 3 years from now. b) the 1.5-year forward rate two years from now

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