Thanks a lot @David Harper CFA FRM,
I have a question about applying Forward Interest rate formula in this case, is it also valid?
Rforward = (4.00%(5) - 3.00%(3))/(5-3)
Rforward= 5.5% (It is the same result!)
Hello,
I found this question in the GARP Practice Exam, I do not understand the resolution and want to know if anyone can help me.
Below is information on term structure of swap rates:
The 2-year forward swap rate starting in three years is closest to:
A. 3.50%
B. 4.50%
C. 5.52%
D. 6.02%...
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