Following is the current yield to maturity on Treasury bills of various maturities
|
Time to Maturity Months
|
Yield %
|
|
1
|
5.0
|
|
3
|
5.2
|
|
6
|
5.4
|
|
9
|
5.8
|
Assuming monthly compounding, what should the forward interest rate of a three-month T-bill be if it is to be delivered at the end of three months? What if it is to be delivered at the end of six months?