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1. Assume that as of today we have an annualized three-year interest rate of 12 percent, while the current two-year interest rate is 9.5 percent.

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1. Assume that as of today we have an annualized three-year interest rate of 12 percent, while the current two-year interest rate is 9.5 percent. Given this information, estimate the one-year forward rate two years from now and describe how you got the

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