The market is quoting: 3-month (90-day) NZD 2.55% 6-month (182-day) NZD 2.75% What is the 3x6 rate in NZD?

Name: The market is quoting: 3-month (90-day) NZD 2.55% 6-month (182-day) NZD 2.75% What is the 3x6 rate in NZD?
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Question

The market is quoting: 3-month (90-day) NZD     2.55% 6-month (182-day) NZD     2.75% What is the 3x6 rate in NZD?

Quizplus · Accepted Answer

The 3x6 rate is calculated as the geometric mean of the 3-month and 6-month rates. 
Using the formula: (1 + 0.0255)^(90/365) * (1 + 0.0275)^(182/365) - 1 = 0.02927 or 2.927%.

Therefore, the answer is C.

The Market Is Quoting: 3-Month (90-Day) NZD 2