The relationship between the spot and Forward Rates: Example 2 72=10.5 2=105% f3 3=10.8%73=108%73=10.8 Charles cao9 Charles Cao The Relationship Between the Spot and Forward Rates: Example 2 r3 = 10.8% r r3 = 10.8% 3 = 10.8% r2 = 10.5% f r2 = 10.5% 3 = ?