Suppose the spot rates for 1 and 2 years are s1=6.3% and s2=6.9% with annual compounding. Recall that in this course interest rates are always quoted on an annual basis unless otherwise specified. What is the discount rate d(0,2)? Please submit your answer rounded to three decimal places. So, for example, if your answer is 0:4567 then you should submit an answer of 0:457.
The probability that Olive flips heads and rolls an even number is 3/12 or 1/4.
These events are known as independent events which means the result of one event will not affect the other. The find the probability of the two events, you must multiply the probability of flipping heads and rolling an even number on a number cube.
1/2 x 3/6 = 3/12 OR 1/4 :)
