The 2 yr frwd rate one year from now is 2%.
How is below statement correct interpretation of above
“2% is the rate that can be locked in today by buying a three year ZCB”
The 2 yr frwd rate one year from now is 2%.
How is below statement correct interpretation of above
“2% is the rate that can be locked in today by buying a three year ZCB”
The second statement is about a 3-year rate (not a 2-year rate) starting today (not one year from today).