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Question 9 (7 points) You note the following yield curve in The Wall Street Journal Bond A B D E Years to Maturity 1 2

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Question 9 (7 points) You note the following yield curve in The Wall Street Journal Bond A B D E Years to Maturity 1 2 3 4 5 Yield to Maturity 4% 5.5% 5.99% 6.49% 8.70% According to the unbiased expectations theory, what is the 2-year forward rate 2 years from now (fy). assuming that the interest rate is compounded annually? 08.01% 07.33% 7.49% 8.58% 6.98%

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