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Given the following spot rates: 1year CD: 1% 2year CD: 1.5% 3year CD: 2% 4year CD: 2.2% 5year CD: 2.8% Find the rate on 2

Given the following spot rates:

1year CD: 1%

2year CD: 1.5%

3year CD: 2%

4year CD: 2.2%

5year CD: 2.8%

Find the rate on 2 year CDs 3 years forward. State your answer as a percentage with 3 digits after the decimal point.

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