Question: We have two forward prices with different maturities, 1 year and 2 years: F(0, 1) = 105, F(0, 2) = 109. Spot price S(0) is

We have two forward prices with different maturities, 1 year and

We have two forward prices with different maturities, 1 year and 2 years: F(0, 1) = 105, F(0, 2) = 109. Spot price S(0) is trading at 100. Assume the risk free rate is piece-wise constant, dividend yield and repo rate are 0, what is the implied risk free rate between T= 1 and T = 2

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