Explanation:
To derive the one-year forward rate three years from now would require the four-year spot rate along with the three-year spot rate. Each of the other answer choices can be derived from the given spot rates:
(Book 3, Module 42.2, LO 42.h)
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Question 76
Given the one-year, two-year, three-year, five-year, and seven-year spot interest rates, which of the following forward interest rates cannot be derived?
A
Two-year forward rate one year from now.
B
Three-year forward rate two years from now.
C
Two-year forward rate five years from now.
D
One-year forward rate three years from now.
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