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Question 21 What is the implied two year forward rate three year into future (3y2y)? Maturity Spot Rates 0.73 1.11 0.5 1.0 1.5 2.0 2.5

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Question 21 What is the implied two year forward rate three year into future (3y2y)? Maturity Spot Rates 0.73 1.11 0.5 1.0 1.5 2.0 2.5 1.68 3.0 1.99 3.5 4.0 4.5 5.0 2.42 Selected Answer: 4.07% D. Answers: 3.07% A 2.07% B. 1.07% C. 4.07% D

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