SOA Exam FM Sample Question 99
Study guide: Exam FM-2
The one-year forward rates, deferred t years, are estimated to be:
Year (t) |
0 | 1 | 2 | 3 | 4 |
|---|---|---|---|---|---|
| Forward Rate | 4% | 6% | 8% | 10% | 12% |
Calculate the spot rate for a zero-coupon bond maturing three years from now.
- A) 4%
- B) 5%
- C) 6%
- D) 7%
- E) 8%
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