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(20 points) The current yield curve for default-free zero-coupon bonds is as follows: Years to maturity Yields to maturity 1 10% 2 11% 3 12%

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(20 points) The current yield curve for default-free zero-coupon bonds is as follows: Years to maturity Yields to maturity 1 10% 2 11% 3 12% What are the implied one-year forward rates (i.e. the expected interest rate from year 1 to year 2 and from year 2 to year 3)

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