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Question 8 Given the following term structure, what is the forward rate of a 3-year treasury bond issued 1 year from now? Please answer in

Question 8

Given the following term structure, what is the forward rate of a 3-year treasury bond issued 1 year from now? Please answer in decimal format and keep 4 decimal places.

Maturity Yield

1 vear

5.2%

2 years 3.2%

3 years 3.4%

4 years 3.5%

5 years 3.6%

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