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The 1-yr and 2-yr spot rates are 3% and 4%, respectively. An investor has a horizon of two years. She buys a two-year bond with

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The 1-yr and 2-yr spot rates are 3% and 4%, respectively. An investor has a horizon of two years. She buys a two-year bond with a 45% coupon. If the relevant future rates are the forward rates, what is the (expected) ROR

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