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| revprev | Admin | Dec 5'23 at 0:27 | +5 | ||
| revcur | Admin | (Created page with "'''Solution: C''' <math display = "block">\begin{gathered}r_1=\frac{110}{106.8}-1=3.00 \% \\ 101.93=\frac{5}{1+r_1}+\frac{105}{\left(1+r_2\right)^2} \Rightarrow r_2=4.00 \% \\ 111.31=\frac{10}{1+r_1}+\frac{10}{\left(1+r_2\right)^2}+\frac{110}{\left(1+r_3\right)^3} \Rightarrow r_3=6.00 \%\end{gathered}</math> And the forward rate from year 1 to year 2 equals: <math display = "block">f_2=\frac{\left(1+r_2\right)^2}{1+r_1}-1=5.0 \%</math> '''References''' {{cite web |...") | Dec 5'23 at 0:23 | +731 |