What is the annualized forward rate between year 2 and


You would like to know what the market expects the 2 year rate will be two years from now. You observe the following yield curve for discount, or zero-coupon, bonds: Maturity Yield to Maturity 1 1.3% 2 2.7% 3 4% 4 4.8% What is the annualized forward rate between year 2 and 4? [Please express your answer as a percent without the percentage sign so for 10.32% please enter 10.32]

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Financial Management: What is the annualized forward rate between year 2 and
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