When you are given a series of rates… 6 months, 1 year, 2 year, 3 year.
To determine the return, you subtract 6 month rate from 3 year rate, and then divide by 2.
Why do you divide by 2? Is it because they give you 6 month rate?
If the rates given are 1 year, 2 year, 3 year, 4 year. Do you not divide by 2 in this situation?