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3I0-012 · Question #640

From the following GBP deposit rates: 1M (31-day) GBP deposits 3.15% 2M (61-day) GBP deposits 3.25% 3M (91-day) GBP deposits 3.41% 4M (120-day) GBP deposits 3.56% 5M (152-day) GBP deposits 3.73% 6M…

The correct answer is D. 3.997%. See the full explanation below for the reasoning.

Question

From the following GBP deposit rates:

1M (31-day) GBP deposits 3.15% 2M (61-day) GBP deposits 3.25% 3M (91-day) GBP deposits 3.41% 4M (120-day) GBP deposits 3.56% 5M (152-day) GBP deposits 3.73% 6M (182-day) GBP deposits 3.90% calculate the 3x4 forward-forward rate.

Options

  • A3.410%
  • B3.977%
  • C3.996%
  • D3.997%

How the community answered

(63 responses)
  • A
    3% (2)
  • B
    5% (3)
  • C
    8% (5)
  • D
    84% (53)

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