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a) If the one-year zero coupon bond yield is 7% per year and the two-year zero-coupon bond yield is 8.3% per year, determine the rate

a) If the one-year zero coupon bond yield is 7% per year and the two-year zero-coupon bond yield is 8.3% per year, determine the rate on the 12x24 Forward Rate Agreement (FRA) contract. (20 marks)

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