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Forward Rate. Assume that as of today, the annualized interest rate on a three - year security is 9 percent, while the annualized interest rate

Forward Rate. Assume that as of today, the annualized interest rate on a three-year security is 9 percent, while the annualized interest rate on a two-year security is 6 percent. Use this information to estimate the one-year forward rate two years from now.
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