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4. The following are the prices of $1000 par value zero-coupon bonds with one and two year maturities: One year maturity: S950 Two year maturity:

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4. The following are the prices of $1000 par value zero-coupon bonds with one and two year maturities: One year maturity: S950 Two year maturity: 8850 Calculate the one-year forward rate for year 2 (ie. the one year effective rate during year 2), (11.8%)

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