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Assume that, as of today, the annualized interest rate on a three-year security is 2 percent, while the annualized interest rate on a one-year security
Assume that, as of today, the annualized interest rate on a three-year security is 2 percent, while the annualized interest rate on a one-year security is I percent and the one-year forward rate one year from now is 2 percent. How many percent is the one-year forward rate two years from now? Round your answer to two decimal places.
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