seasmarie75
07.03.2020 •
Mathematics
Assume that as of today, the annualized two-year interest rate is 13 percent and the one-year interest rate is 12 percent. use this information to estimate the one-year forward rate
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Ответ:
14.01%
Step-by-step explanation:
Given
R1 = Rate1 = 2 years interest
R2 = Rate 2 = 1 year interest
R1 = 13%
R1 = 0.13
R2 = 12%
R2 = 0.12
the one-year forward rate is calculated by
( 1 + R2)²/(1 + R1)
= (1 + 0.13)²/(1 + 0.12)
Forward Rate = 1.13²/1.12
Forward Rate = 1.2769/1.12
Forward Rate = .0140089
Forward Rate = 14.0089%
Forward Rate = 14.01% Approximated
Hence, the one year forward rate is 14.01%
Ответ: