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    Principles of Corporate Finance
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    Exam 26: Managing Risk
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    If the One-Year Spot Interest Rate Is 6% and the Two-Year
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If the One-Year Spot Interest Rate Is 6% and the Two-Year

Question 50

Question 50

Multiple Choice

If the one-year spot interest rate is 6% and the two-year spot interest rate is 7%,calculate the one-year forward interest rate one year from today.


A) 6.5%
B) 7.0%
C) 7.5%
D) 8.0%

Correct Answer:

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