Relation between spot and discount rates

  • Thread starter Thread starter prxthm
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I am totally new to financial engineering and I am stuck on this question. Please help, thank you :)

Suppose the spot rates for 1 and 2 years are s1 = 6.3 % and s2 = 6.9 % with annual compounding. interest rates are quoted on an annual basis unless otherwise specified. What is the discount rate d(0,2)? Please submit your answer rounded to three decimal places. So, for example, if your answer is 0:4567 then you should submit an answer of 0:457
 
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