What is the 3-year implied spot rate

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The following annual forward rates are available in the market today: F0,1 = 0.80%, F1,2 = 1.12%, F2,3 = 3.94%, F3,4 = 3.28% and F4,5 = 3.14%.

-What is the 3-year implied spot rate is closest to?

a. 1.18%.b. 1.94%.c. 2.28%.d. 3.48%.e. 3.65%.

-What is the 2-year implied spot rate is closest to?

a. 0.96%.b. 1.04%.c. 1.92%.d. 3.48%.e. 3.65%.

-The value per 100 of par value of a three-year, 9.5% coupon bond, with interest paid annually, is closest to?

a. 122.10b. 124.17c. 105.82.d. 105.99e. 125.91

Reference no: EM132670225

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