Independently of the previous question, assume s1=1.2%,s2=1.5%. Find f1,2.
To find f1,2 given s1=1.2% and s2=1.5%, we need to determine the ratio between the two rates.
The formula for calculating f1,2 is:
f1,2 = (1 + s2) / (1 + s1)
Plugging in the given values, we have:
f1,2 = (1 + 0.015) / (1 + 0.012)
Simplifying further:
f1,2 = 1.015 / 1.012
Therefore:
f1,2 ≈ 1.00296
So, f1,2 is approximately 1.00296.