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1. You observe the following rates: One year spot: 2% 1fi (one-year forward one year from now): 4% 2f1: 6% Compute the two and three

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1. You observe the following rates: One year spot: 2% 1fi (one-year forward one year from now): 4% 2f1: 6% Compute the two and three year annualized spot rates. [6 points]

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