Find the spot rates


Problem:

Suppose the nominal spot rates for the next four years from now (t=0) are s1=6.40, s2=7.00, s3=7.50, s4=7.80 in %

Required:

Question 1: Find the spot rates s1, s2, s3, and s4 for annual compounding

Question 2: Find the forward rates f1,4, f2,3, and f2,4, for quarterly compounding

Question 3: Find the forward rates f2,3, f2,4, and f3,4, for continuous compounding

Question 4: Find by forecasting next year's spot rates s1', s2', and s3' for monthly compounding

Note: Please show the work not just the answer.

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Accounting Basics: Find the spot rates
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