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Forward Rate. Assume that as of today, the annualized interest rate on a three-year security is 0.12, while the annualized interest rate on a two-year

Forward Rate. Assume that as of today, the annualized interest rate on a three-year security is 0.12, while the annualized interest rate on a two-year security is 0.03. 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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