The 2-year forward rate in year 2 starts at the beginning of the year. So it is 1 plus the 3-year rate cubed divided by 1 plus the 1-year rate. Then you take the square root because there are two years and subtract 1. Y22 = (1.025^3/1.0256)^(1/2)-1

@@martyhanby7609 Thank you so much sir 🙏

I draw the graphs when I work with options, it makes it easier when you have a picture.

😂 same

No clue, I posted this for my class.

im just starting a class based on this book. did you find these videos good/helpful?

Can you give me the pdf file of this book?

Thank you!