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The annualized yield on a three-year security is 8 percent; the annualized two-year interest rate is 7 percent, while the one-year interest rate is 5
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The annualized yield on a three-year security is 8 percent; the annualized two-year interest rate is 7 percent, while the one-year interest rate is 5 percent. The one-year forward rate that starts two years from today is _________ percent.
7.56
8.41
12.33
10.03
The annualized yield on a three-year security is 8 percent; the annualized two-year interest rate is 7 percent, while the one-year interest rate is 5 percent. The one-year forward rate that starts two years from today is _________ percent.
| 7.56 | ||
| 8.41 | ||
| 12.33 | ||
| 10.03 |
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