Why can forward rates be viewed as hed geable rates


Response to the following questions:

1. How does the taxability of interest affect the yield offered on a bond?

Suppose that the 1-year spot rate is 4.1% and the 2-year spot rate is 4.6%. What is the 1-year forward rate one year from now?

2. a. Comment on the following statement: "Forward rates are good predictors of future interest rates."

b. Why can forward rates be viewed as hed geable rates?

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Accounting Standards: Why can forward rates be viewed as hed geable rates
Reference No:- TGS02107153

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