Type the Excel formula for the implied one-year forward rate, one year ahead, from a 1-year spot of 3.5 % and a 2-year spot of 4.0 %.

Answer

=(1+0.04)^2/(1+0.035)-1

(1 + r₂)² ÷ (1 + r₁) − 1 = 0.045024. Two years at 4 % must equal one year at 3.5 % then one year at the forward.

Bigel, Introduction to Financial Analysis (CC BY 4.0) §13.7–13.8 — bootstrapping shape only, with the terminology corrected (spot = today’s zero yield, forward = implied future); three-theory register; original curve and figures