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Period Years YTM/Coupon Rate Spot Rate(%) 1 0.5 -- 5.50 2 1.0 -- 6.00 3 1.5 8.50 ? (2) What is the forward rate from

Period Years YTM/Coupon Rate Spot Rate(%)

1 0.5 -- 5.50

2 1.0 -- 6.00

3 1.5 8.50 ?

(2) What is the forward rate from period 2 to period 3?

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