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A 2-year T-bond rate is currently 5% (= 1 R 2 ) while a 3-year T-bond rate is currently 7% (= 1 R 3 )

A 2-year T-bond rate is currently 5% (=1R2) while a 3-year T-bond rate is currently 7% (=1R3) . Use this to estimate 3f1 (forward rate for 1 year bond in year 3). Enter your answer as a percentage and to 4 decimal places (e.g. write 4.25 if the answer is four and a quarter percent).

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