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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 8% and the Two-Year
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If the One-Year Spot Interest Rate Is 8% and the Two-Year

Question 38

Question 38

Multiple Choice

If the one-year spot interest rate is 8% and the two-year spot interest rate is 9%,calculate the one-year forward interest rate one year from today.


A) 10.0%
B) 10.5%
C) 11.0%
D) 11.5%

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