Question: Using the data in following table, calculate the differences between one-year realized rate and one-year forward rate ( 1 f 2 ) and complete the
Using the data in following table, calculate the differences between one-year realized rate and one-year forward rate (1f2) and complete the following table.
| 1f2 |
|
|
|
| Year | Realized Rate | Forward Rate | Difference |
| 1991 | 5.81% |
|
|
| 1992 | 3.26% |
|
|
| 1993 | 3.40% |
|
|
| 1994 | 5.43% |
|
|
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