18. Forward Rates (LO3, CFA8) The current one-year interest rate is 7 percent and the current twoyear

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18. Forward Rates (LO3, CFA8) The current one-year interest rate is 7 percent and the current twoyear interest rate is 6 percent. What is the implied forward rate for next year’s one-year rate?

a. 7 percent

b. 6 percent

c. 5 percent

d. 4 percent

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