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Problem in forecasting interest rates based on unbiased expectations theory. These are spot rates today (Oct. 9, 2020)
R1= 12%, R2=13%, R3=14%, R4=15%
A. Given this information calculate one year forward ratefor a one yr loan beginning 10/9/21 and ending 10/9/22.
B. calculate two year forward ratefor a one yr loan beginning 10/9/22 and ending 10/9/23.
C. calculate three year forward ratefor a one yr loan beginning 10/9/23 and ending 10/9/24.
D. calculate two year forward ratefor a two yr loan beginning 10/9/22 and ending 10/9/24.
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