Forward rates question, According to the pure expectations

Forward rates question

Reference no: EM13712516

Forward Rates Question?

According to the pure expectations theory of the term structure, what are the market's expectations of the short rate for the next three semi-annual periods (meaning the 6-month periods beginning in 6 months, 12 months, and 18 months), i.e. what are the implied forward rates? (do not round excessively)

Maturity (years) ??Spot Rate
0.5 6.000%
1.0 5.750%
1.5 5.500%
2.0 5.250%

Reference no: EM13712516

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