What if it is to be delivered at the end of six months

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Reference no: EM131315444

Following is the current yield to maturity on Treasury bills of various maturities

Time to Maturity Months	Yield %
1	5.0
3	5.2
6	5.4
9	5.8

Assuming monthly compounding, what should the forward interest rate of a three-month T-bill be if it is to be delivered at the end of three months? What if it is to be delivered at the end of six months?

Reference no: EM131315444

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