Consider the following data for government securities:
Face Value Interest Rate (%) Maturity (Years) Current Price
100,000 0 1 91,000
100,000 10.5 2 99,000
100,000 11.0 3 99,500
100,000 11.5 4 99,900
Calculate the forward rates.
Consider the following data for government securities:
Face Value Interest Rate (%) Maturity (Years) Current Price
100,000 0 1 91,000
100,000 10.5 2 99,000
100,000 11.0 3 99,500
100,000 11.5 4 99,900
Calculate the forward rates.
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