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One day, the following market yields of treasury securities were observed. Maturity Yields One year 3.0% Two year 5.0% Three year 4.0% a. Draw the

One day, the following market yields of treasury securities were observed.

Maturity Yields
One year 3.0%
Two year 5.0%
Three year 4.0%

a. Draw the yield curve.

b.Assuming that in this economy, investors have zero liquidity premium, find the two forward rates.

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