hellohi
Active Member
hello @David Harper CFA FRM
In financial markets and products topic practise question in official GARP book, they ask the following question:
below is a table of term structure of swap rates:
Maturity in Years / Swap Rate
1 / 2.5%
2 / 3.0%
3 / 3.5%
4 / 4.0%
5 / 4.5%
The two year forward swap rate starting in three years is closest to:
A. 3.5%
B. 4.5%
C. 5.51%
D. 6.02%
The answer was D
may you give a simple solving way to get this answer? or more than one solving way?
thanks