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2. Suppose that there are Treasury strips with $100 par values. The price of a one-year Treasury strip is $98. The price of the two-year

2. Suppose that there are Treasury strips with $100 par values. The price of a one-year Treasury strip is $98. The price of the two-year Treasury strip is $95. The price of a three-year Treasury strip is $91. Compute the forward interest rates for year 2 and year 3.

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