Question: Free Response Component: Please show all work and circle your final answers for the following questions. For calculations using the financial calculator, write down your
Free Response Component: Please show all work and circle your final answers for the following questions. For calculations using the financial calculator, write down your inputs. If no work is shown regarding how you arrive at your answer, no credit will be assigned. You may use the back of the exam if more room is needed 21. (worth 6 points in total) Suppose we know the following regarding current Treasury securities: 1 3 Years to Maturity Annualized Yield 2 8% 10% 9% Calculate the following to 4 decimal places, expressed in percentages: 2 3 The 1-year rate next year (Fa) - 0.4671 40.71% The 1-year rate two years from now (Fal: Vz) [1.9/147] - 28493 +84.93% The 2-year rate 1 year from now (F1.3): (4x18x1.-) - = 0.5558 55.534
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