Question: Let T1 s. T2 be two times in the future. Suppose the zero rates for loans of these lengths, starting today, are n and f'n.

$Let T1 s\". T2 be two times in the future. Suppose$

Let T1 s\". T2 be two times in the future. Suppose the zero rates for loans of these lengths, starting today, are n and f'n. State and derive a formula for the zero forward rate r13 for loans made at T1 and lasting until T3. Describe a strategy by which you [with help of your friendly banker] can insnre that you can get a loan at time T1 which lasts until T2 at rate r13

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