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If the 6-year spot rate is 7.5% and the 2.5-year forward rate 3.5-years from now is 3.2%, what is the 3.5-year spot rate? And please

  1. If the 6-year spot rate is 7.5% and the 2.5-year forward rate 3.5-years from now is 3.2%, what is the 3.5-year spot rate?

And please explain what to do with the fact that it is a 2.5 year forward rate 3.5 years from now. What does that change in the formula.

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