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The 1-year spot interest rate is 3.75% and the 2-year spot interest rate is 3.00%. What is the 1-year/2-year forward interest rate (the interest rate

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The 1-year spot interest rate is 3.75% and the 2-year spot interest rate is 3.00%. What is the 1-year/2-year forward interest rate (the interest rate from the end of year 1 to the end of year 2)? Use annual compounding: O A 2.255% B. 2.981% C.3.15796 OD.3.375%

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