SCE 2-26
Major Muhtaseb, CAIA is pricing a 4-year zero coupon bond. Major collected teh following information: Terms Rate 1 year spot rate 6.0%
4-year spot rate 7.5% 1-year forward rate 1 year 7.3% from now 1-year forward rate 3 year 8.90% from now Compute the 1-year forward rate, 2 years from now. o 7.40% o 8.0% o 7.50% o 7.80%