The table below shows the current coupon yields to maturity and spot rates of interest for...

 

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The table below shows the current coupon yields to maturity and spot rates of interest for six U.S. Treasury securities. Assume all securities pay interest annually. YIELDS TO MATURITY AND SPOT RATES OF INTEREST Sport Rate of Interest Term to Maturity Current Coupon Yield to Maturity 1-year Treasury 5.25% 5.25% 2-year Treasury 5.65 5.69 3-year Treasury 6.05 6.11 5-year Treasury 6.40 6.45 10-year Treasury 30-year Treasury 6.80 6.99 7.20 7.50 Compute the two-year implied forward rate three years from now, given the information provided in the preceding table. Do not round intermediate calculations. Round your answer to two decimal places. % The table below shows the current coupon yields to maturity and spot rates of interest for six U.S. Treasury securities. Assume all securities pay interest annually. YIELDS TO MATURITY AND SPOT RATES OF INTEREST Sport Rate of Interest Term to Maturity Current Coupon Yield to Maturity 1-year Treasury 5.25% 5.25% 2-year Treasury 5.65 5.69 3-year Treasury 6.05 6.11 5-year Treasury 6.40 6.45 10-year Treasury 30-year Treasury 6.80 6.99 7.20 7.50 Compute the two-year implied forward rate three years from now, given the information provided in the preceding table. Do not round intermediate calculations. Round your answer to two decimal places. %

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To compute the twoyear implied forward rate three years from now we first ... View the full answer