FIN325 Implied Forward Rate problemsKEY

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These are the Implied Forward Rate problems you are responsible for

R14% and R24.5% What is the implied 1-year forward rate for year 2?

2f1 (2)/() - 1 %

R24.5% and R35.2% What is the implied 1-year forward rate for year 3?

3f1 (3)/(()2) - 1 %

R24.5% and R45.6% What is the implied 2-year forward rate for year 3?

3f2 ((4)/(()2))(1/2) - 1 %

R12.2% and R22.4% What is the implied 1-year forward rate for year 2?

2f1 (2)/() - 1 2.6%

R22.4% and R32.8% What is the implied 1-year forward rate for year 3?

3f1 (3)/(()2) - 1 %

R22.4% and R43.2% What is the implied 2-year forward rate for year 3?

3f2 ((4)/(()2))(1/2) - 1 %

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