Assuming the 92-day and 274 day interest rate is 8% (act/360, money market yield) compute the 182- day forward rate starting in 92 days (act/360, money market yield).
Answer provided is 7.20%.
I don't understand the term act/360 given in this question. What is its meaning? How is this computation made? To answer this question, study of which topic in quantitative finance is necessary?
In my opinion, this question is useful for testing the financeIQ of the readers of this "Quantitative Finance stack exchange". Isn't it?