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Suppose, as of today, the annualized three-year interest rate is 9%, the annualized two-year interest rate is 8% and the one-year rate is 6%. Calculate

  1. Suppose, as of today, the annualized three-year interest rate is 9%, the annualized two-year interest rate is 8% and the one-year rate is 6%. Calculate the forward rate, t+1r2.

    6.51%

    8.25%

    9.33%

    10.53%

    11.14%

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