Quiz: Module 5 Homework Quiz . X X *Course Hero *Course Hero virginiacommonwealth.instructure.com/courses/53566/quizzes/123515/take ABP G Spring 2022 VCU Home O Syllabus D Question 2 15 pts Account Announcements Modules Problem 1 Part B: (This is in continuation to the earlier question (problem 1 part A). Dashboard Assignments Suppose that in the fixed-income securities market, the two-year and three-year spot interest rates are Quizzes 8.500% and 10.000%, respectively. (That is, RMko,2 = 8.500% and RMko,3 = 10.000%.) Courses Grades In addition, in the market, the current one-year forward rate two-years from now (FO, Mrk 2, 1) is 12.000%. Discussions What should be an arbitrager's strategy at t = 0 ? Groups People (Borrowing is equivalent to taking a loan; whereas, Lending is equivalent to investing / depositing your 988 Pages savings.) Calendar Files S1) Enter into a forward rate agreement, whereby, they will [ Select ] at one-year [Select ] BigBlueButton forward rate two-years from now. Inbox Borrow Collaborations Lend $2) They will [ Select ] at two-year spot Do Nothing Google Drive History Media Gallery $3) They will [ Select ] at three-year spot rate. Adobe Creative Commons Cloud 10 My Media Help D Question 3 20 pts ENG 2:08 PM O 9 IN 4/12/2022