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13. If the 3-year spot rate is 3% and the 2-year spot rate is 2%, what is the expected one-year interest rate two years from

13. If the 3-year spot rate is 3% and the 2-year spot rate is 2%, what is the expected one-year interest rate two years from now?

a) 4.00%

b) 5.03%

c) 7.50%

d) 6.04%

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