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The 1-year zero rate is 2% and the 1.25-year zero rate is 2.5% on a continuously compounded basis. The forward rate for the period between

The 1-year zero rate is 2% and the 1.25-year zero rate is 2.5% on a continuously compounded basis. The forward rate for the period between 1 and 1.25 years on a quarterly compounding basis is closest to:

a. 1.53% b. 4.53% c. 2.26% d. 4.23%

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