Determine forward swap rate


The term structure of swap rates is: 1-year, 2.50%; 2-year, 3.00%; 3-year, 3.50%; 4-year, 4.00%; 5-year, 4.50%. The two-year forward swap rate starting in three years is closest to

A. 3.50%

B. 4.50%

C. 5.51%

D. 6.02%

Solution Preview :

Prepared by a verified Expert
Finance Basics: Determine forward swap rate
Reference No:- TGS0673606

Now Priced at $5 (50% Discount)

Recommended (94%)

Rated (4.6/5)