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Question 3 1 pts Forward Rate. Assume that as of today, the annualized interest rate on a three-year security is 0.11, while the annualized interest
Question 3 1 pts Forward Rate. Assume that as of today, the annualized interest rate on a three-year security is 0.11, while the annualized interest rate on a two-year security is 0.03. Use only this information to estimate the one-year forward rate two years from now. Enter the answer in decimal form using 4 decimals (e.g. 0.1234) Question 4 1 pts After-tax Yield. You need to choose between investing in a one-year municipal bond with a 0.02 yield and a one-year corporate bond with an 0.1 yield. If your marginal federal income tax rate is 0.12 and no other differences exist between these two securities, which one would you invest in? For the answer, enter the after-tax vield that you will ultimately get once you choose the best bond. Enter the answer as a decimal using 4 decimals (eg 0.1234)
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