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The current annual rate on a 2 yr T-Bill is 2.60% while a 4 yr T-Bill pays an annual rate of 2.90%. The implied forward

The current annual rate on a 2 yr T-Bill is 2.60% while a 4 yr T-Bill pays an annual rate of 2.90%. The implied forward rate from year 2 to year 4 is therefore:

4.65%

3.20%

6.50%

2.75%

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