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Fordward Rate calculation Forward Rate. a. Assume that as of today, the annualized two-year interest rate is 0.13, while the one-year interest rate is 0.04.

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Fordward Rate calculation
Forward Rate. a. Assume that as of today, the annualized two-year interest rate is 0.13, while the one-year interest rate is 0.04. Use only this information to estimate the one-year forward rate. Enter the answer in decimal form using 4 decimals (e.g. 0.1234)

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