Consider the following spot interest rates for maturities of one, two, three, and four years.
r1 = 6.2% r2 = 6.7% r3 = 7.4% r4 = 8.2%
Assuming a constant real interest rate of 2 percent, what are the approximate expected inflation rates for the next four years? (Round your answer to 2 decimal places. Omit the "%" sign in your response.)
I1 = %
I2 =
I3 =
I4 =
Your help would be greatly appreciated :)
Also if you like these for fun, I'm having trouble with the last two
Consider the following spot interest rates for maturities of one, two, three, and four years.
r1 = 5.5% r2 = 5.9% r3 = 6.6% r4 = 7.4%
What are the following forward rates, where f1, k refers to a forward rate for the period beginning in one year and extending for k years? (Round your answer to 2 decimal places. Omit the "%" sign in your response.)
f1,1 6.3%
f1,2 %
f1,3 %
