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One-, two- and three-year maturity, default-free, zero-coupon bonds have yields-to-maturity of 1%, 1.10% and 1.25% respectively. What is the implied one-year forward rate, two years
One-, two- and three-year maturity, default-free, zero-coupon bonds have yields-to-maturity of 1%, 1.10% and 1.25% respectively. What is the implied one-year forward rate, two years from today?
Group of answer choices
1.40%.
1.35%.
1.50%.
1.45%.
1.55%.
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