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Assume that as of today, the annualized two-year interest is 2.45%, the one-year interest rate is 1.25% and the liquidity premium of a two-year security

Assume that as of today, the annualized two-year interest is 2.45%, the one-year interest rate is 1.25% and the liquidity premium of a two-year security is 0.185%. Based on the Liquidity premium theory, what is the estimate of the one-year forward rate one-year from now? Please show all work

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