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Assume that as of today the annualized interest rate on a three year security is 8%, while the annualized interest rate on a two year

Assume that as of today the annualized interest rate on a three year security is 8%, while the annualized interest rate on a two year security is 6%. Assuming that interest is compounded, use this information to find the one year forward rate two years from now.

A)2.11%

B)18.8%

C)11.75%

D)12.00%

E)12.11%

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