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Consider the following term structure of interest rates: (10 points). Maturity Interest Rate 1-year 2.2% 2-year 3.3% 3-year 4.4% Compute the implied one-year forward rate
Consider the following term structure of interest rates: (10 points).
Maturity Interest Rate
1-year 2.2%
2-year 3.3%
3-year 4.4%
Compute the implied one-year forward rate at the beginning of year 3.
Compute the implied one-year forward rate at the beginning of year 2.
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