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Suppose you observe the following spot yield curve: 1 year spot rate: 1.79% 2 year spot rate: 2.59% 3 year spot rate: 3.76% 4 year
Suppose you observe the following spot yield curve:
1 year spot rate: 1.79%
2 year spot rate: 2.59%
3 year spot rate: 3.76%
4 year spot rate: 4.50%
The rate for a two-year zero coupon bond issued one year from today, f(1,2) is: ___ %.
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