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What is the one-year forward rate on zero-coupon treasury

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Reference no: EM132483143

Forecasting Interest Rates On May 23, 20XX, the existing or current (spot) one-year, two-year, three-year, and four-year zero-coupon Treasury security rates were as follows:

1R1 = 5.25%,  

1R2 = 5.75%,

1R3 = 6.25%,

1R4 = 6.45%

Question 1: Using the unbiased expectations theory, what is the one-year forward rate on zero-coupon Treasury bonds for year four as of May 23 (i.e., , 4f1) , 20XX ?

Reference no: EM132483143

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