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Suppose you observe the following spot yield curve: 1 year spot rate: 1.56% 2 year spot rate: 2.67% 3 year spot rate: 3.55% 4 year
Suppose you observe the following spot yield curve: 1 year spot rate: 1.56% 2 year spot rate: 2.67% 3 year spot rate: 3.55% 4 year spot rate: 4.54% The rate for a one-year zero coupon bond issued two years from today, f(2,1) is: ___ %. Include two decimal places in your answer.
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