what do you predict the market rate of interest will be in year 2,

第二年市场预计利率是多少
between year 2 and year 3?

第二年和第三年之间
Student: The forward rate, it would be 1 plus i_2^.

远期利率=1+(i2)^2
Okay, and i_2 happens to be right here, 5 percent. Okay, so that's the forward.

i2值恰好在这里5% 就是远期利率
So 5 percent you'd predict.

你预测5%
Okay, so let me refine that a little bit.

让我来简单总结一下
If the world were one of total certainty,

如果世界没有不确定性
so everybody trading today had a perfect forecast of what was going to happen

每个人在交易时都能对未来有预见性
in the future, then of course, the forward rates in the market today

那么肯定市场今天的远期利率
would have to be exactly equal to the forward interest rate.

将完全等于远期利率
Because suppose that you knew for sure the interest rate was

因为这里假设你知道
going to be 4 percent in year 2.

第二年的利率肯定是4%