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The 1-year interest rate is 2.5% and the 3-year interest rate is 3.3%. Suppose you know that the 1-year forward rate two years from now
The 1-year interest rate is 2.5% and the 3-year interest rate is 3.3%. Suppose you know that the 1-year forward rate two years from now equals 3.5%. What is the 1-year forward rate two years from now?
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