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If the 2-year spot rate is 4% and the 1-year spot rate is 3%, what is the expected one-year interest rate next year? 4.92% 5.01%

If the 2-year spot rate is 4% and the 1-year spot rate is 3%, what is the expected one-year interest rate next year?

4.92%

5.01%

3.50%

2.18%

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