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Forward Rate. Assume that as of today, the annualized interest rate on a three - year security is 0 . 1 3 , while the

Forward Rate. Assume that as of today, the annualized interest rate on a three-year security is 0.13, while the annualized interest rate on a two-year security is 0.07. Use only this information to estimate the one-year forward rate two years from now. Enter the answer in decimal form using 4 decimals (e.g.0.1234)

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