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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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