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Suppose a management team wants to evaluate an investment. They discovered that the one-year spot interest rate (EAR) is 1.0% and the two-year spot interest

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Suppose a management team wants to evaluate an investment. They discovered that the one-year spot interest rate (EAR) is 1.0% and the two-year spot interest rate (EAR) is 4.8%. What is the one-year forward rate, f2, today (the forward rate quoted today for an investment that is effective in one year and matures in two years, namely, only fixed for one year)? Indicate your answer in percentage point and round to four decimal places. Do not put ' % ' in your response. Your

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