Question: Given the forward rates below, compounded annually, what are the two, three and four year spot rates? Time Period Forward rate (%) 0y1y 1.88 1y1y

Given the forward rates below, compounded annually, what are the two, three and four year spot rates?

Time Period Forward rate (%)
0y1y 1.88
1y1y 2.77
2y1y 3.54
3y1y 4.12

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