The 6-month Treasury bill spot rate is 4.60%, and the 1-year Treasury bill spot rate is 4.44% What is the impled 6-month forward rate for six months from now? Hint These are annual rates, so you need to convert to semiannual rates (ie divide by 2) For your final enswer, you need to convert back to an annual rate (e multiply by 21 Please report your answer in percent (annualized) to two decimal places. For instance, 3.75% would be 375

The 6-month Treasury bill spot rate is 4.60%, and the 1-year Treasury bill spot rate is 4.44% What is the impled 6-month forward rate for six months from now? Hint These are annual rates, so you need to convert to semiannual rates (ie divide by 2) For your final enswer, you need to convert back to an annual rate (e multiply by 21 Please report your answer in percent (annualized) to two decimal places. For instance, 3.75% would be 375

International Financial Management

14th Edition

ISBN:9780357130698

Author:Madura

Publisher:Madura

Chapter7: International Arbitrage And Interest Rate Parity

Section: Chapter Questions

Problem 56QA

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