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Consider the following US treasury rate table expressed in percentage. Maturity t Yield R(0,t) Yesterday Last Week Last Month 6 Month 2.65 2.35 1.85 1.55

Consider the following US treasury rate table expressed in percentage.

Maturity

t

Yield

R(0,t)

Yesterday Last Week Last Month
6 Month 2.65 2.35 1.85 1.55
1 Year 2.75 2.70 2.20 1.90
2 Year 2.25 2.90 2.40 2.10
3 Year 5.15 4.65 4.15 3.85
5 Year 4.80 4.70 2.20 3.90
10 Year 5.00 4.90 4.40 4.10
30 Year 5.50 5.30 4.80 4.50

The forward rate F(2,1) is the rate that applies to borrowing or lending starting in 2 years from today for an additional year. F(2,1) today is equal to: (Answer in percentage rounded to the second decimal place)

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