hard · Debt Capital Markets
An analyst observes a 2-year spot rate (z_2) of 4.00% and a 1-year spot rate (z_1) of 3.50%.
What is the implied 1-year forward rate beginning one year from now (f_1,2)?
- 4.50%
- 4.00%
- 0.50%
- 3.75%
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