Assume that the pure expectations theory of the term structure is correct and market expectations of future interest rates are accurate

Finance Nov 03, 2021

Assume that the pure expectations theory of the term structure is correct and market expectations of future interest rates are accurate. (a) Calculate the sequence of implied 1-year forward rates. (b) Calculate the sequence of implied 2-year forward rates. (c) Calculate the sequence of implied 3-year forward rates.