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looking for an explanation of this question and how it relates to the expectation theory 6. Suppose the 1-year spot rate is 1% and the

looking for an explanation of this question and how it relates to the expectation theory

6. Suppose the 1-year spot rate is 1% and the 4-year spot rate is 3%. The implied forward rate on a 3-year security of the same risk class originating 1 year from now is A. 2.313% B. 3.676% C. 4.166% D. 3.767%

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