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The current 2-year forward rate in year 3 (f 2,3) is 4.00% in a normal-looking term structure. In a year, you expect the term structure

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The current 2-year forward rate in year 3 (f 2,3) is 4.00% in a normal-looking term structure. In a year, you expect the term structure to flatten. Which of the following (f2,3) rates in a year would indicate that the term structure is flattened? A. 3.00% B. 4.00% C. 5.00% D. None of the above

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