Question: Using the spot interest rates below, what is the forward rate that corresponds to f2,2? Horizon || Rate: 1. || 3.6% 2. || 4.0% 3.

Using the spot interest rates below, what is the forward rate that corresponds to f2,2?

Horizon || Rate:

1. || 3.6%

2. || 4.0%

3. || 4.9%

4. || 5.1%

Answer is 4.5%, 4.7%, 5.3% or 6.0%. Thank you!

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