Finding Forward Rates Suppose the following yield curve: 1-period rate = 4.75%, 2-period rate=4.85%, 3-period rate= 4.90%, 4 period rate=5.01%. What is the 2 year forward rate in 2 years? What is 1 year rate in 2 years?
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- Approximately, what is the value of PG (present worth of arithmetic gradient) if G=185, n=7 years, and i= 7.5% per year?Assume that you conduct a relative value trade and close it out after 34 days. Your 34-day return is 0.40%. Annualize this return as an effective annual yield (EAY). Assume that a year has 365 daysA geometric gradient that increases at f = 6% per year for 15 years is shown in the following diagram. The annual interest rate is 15%. What is the present equivalent of this gradient?
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