Question: Given the data in the table and the information below, please answer the following parts. Show all working and formulas used. The forward rate for

Given the data in the table and the information below, please answer the following parts. Show all working and formulas used. The forward rate for a 3-year loan beginning in 2 years is 0.08%.

Please calculate the forward rate for a 2-year loan starting in 3 years.

Please calculate the 2-year spot rate.

Maturity (T)	r(1)	r(2)	r(3)	r(4)	r(5)	r(6)
Spot Rate (%)	0.050		0.307	0.280	0.120	0.070

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