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35. Assume that as of today, the annualized interest rate on a three year security is 10 percent, while the annualized interest rate on two

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35. Assume that as of today, the annualized interest rate on a three year security is 10 percent, while the annualized interest rate on two year security is 7 percent. Use only this information to estimate the one year forward rate two years from now, 18.455 b. 17:2596 19 O 15.255 O d. 16.255 25 28. Using the following term structure of interest rates, find the one year implied forward rate for year three. 1-year Treasury note 1.95%, 2 year Treasury note 2.39%, and 3-year Treasury note 2.71% a. 4.35% b. 5.35 O c. 2.3596 d. 3.35%

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