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The bank forecasts the following one-year interest rates one and two years in the future: 3.80% and 4.20%. The current three-year interest rate is 4.20%.

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The bank forecasts the following one-year interest rates one and two years in the future: 3.80% and 4.20%. The current three-year interest rate is 4.20%. Estimate the current one-year interest rate. OM 445 Occ. none of the shore Reset Selection Question 4 of 4 2.5 Points The 5-year spot interest rate is 5.3% and the 3-year spot interest rate is 4.6%. What is the implied forward rate on a 2- year bond originating 3 years from now? Oason

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