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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%.

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.

A. 4.4%

B. 4.6%

C. 4.8%

D. none of the above.

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