How would I calculate the 1 yr forward rates over the next 3 years for spot rates of Yr 1 .050
Yr 2 .054
Yr 3 .059
Yr 4 .066
I just need the formulas, not the answers.© BrainMass Inc. brainmass.com March 4, 2021, 6:20 pm ad1c9bdddf
You can use Linear Regression in Excel for this calculation. Or use the formulae in the attachment.
NOTE: x is year numbers 1, 2, 3, 4, 5 and y is spot rates for these years successively.
The expert calculates the 1yr forward rates over the next 3 years for spot rates.