SOA Exam FM Sample Question 52
Study guide: Exam FM-2
The prices of zero-coupon bonds are:
| Maturity | Price |
|---|---|
| 1 | 0.95420 |
| 2 | 0.90703 |
| 3 | 0.85892 |
Calculate the one-year forward rate, deferred two years.
- A) 0.048
- B) 0.050
- C) 0.052
- D) 0.054
- E) 0.056
Answer this question and see the worked solution