Business, 28.02.2020 00:23 savanah111

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

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Suppose the 8-year spot rate(r8) is 2.0% and the 10-year spot rate(r10) is 3.0%. Which rate is close...

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