Revision as of 15:02, 20 November 2023 by Admin (Created page with "'''Solution: E''' <math display = "block"> \begin{array}{c}{{1.05^{4}=1.04^{2}(1+f)^{2}}}\\ {{f=0.0601}}\end{array} </math> {{soacopyright | 2023 }}")
Exercise
Nov 20'23
The current yield rates for zero-coupon bonds are as follows:
Term (years) | Annual effective yield rate |
---|---|
1 | 3.5% |
2 | 4.0% |
3 | 4.0% |
4 | 4.5% |
Calculate the implied two-year spot rate at the end of year two.