Question: Problem 18 You have until 1:30 PM to complete this assignment Intro Treasury spot interest rates are as follows: 2 3 4 Maturity (years) Spot

Problem 18 You have until 1:30 PM to complete this assignment

Problem 18 You have until 1:30 PM to complete this assignment Intro Treasury spot interest rates are as follows: 2 3 4 Maturity (years) Spot rate 3.1% 3.7% 4.5% Part 1 Attempt 1/3 for 10 pts You would like to lend out $21MM two years from now for one year 1) What percentage of interest rate can you eam in that one year, compute both accurate and approximate answers? 2) Construct the necessary transactions today to lock in that (future) one year interest revenue. Show the $ amount of interest revenue you will eam +decimals Submit

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