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.