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1 . A bank deposit for 2 years. The interest rate is 1 8 % p . a . 2 . A bank deposit for

1 .

A bank deposit for

2

years. The interest rate is

18 %

.

.

2 .

A bank deposit for

1

years. The interest rate is

2 %

.

.

What is the EXACT expected interest rate between time

1

and time

2 ? (

the

1 -

year forward rate, one year from now

)

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