Suppose that the spot interest rates with continuous compoundingare: Maturity (years) Rate % 1 1.3 2

Suppose that the spot interest rates with continuous compoundingare: Maturity (years) Rate % 1 1.3 2 2.2 3 2.3 Calculate forwardinterest rates for second and third years, and for a 2-year periodbetween years 1 and 3. . . .

0 replies

Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply

Your email address will not be published. Required fields are marked *