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DENIUS [597]
3 years ago
10

Suppose the 8-year spot rate(r8) is 2.0% and the 10-year spot rate(r10) is 3.0%. Which rate is closest to the forward rate that

begins in 8 years and last for 2 years(8f2)
1. 1.0%
2. 2.5%
3. 4.0%
4. 7.0%
5. The forward cannot be determined
Business
1 answer:
Dafna11 [192]3 years ago
5 0
The answer is 2 since it’s between botch and they’re even
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