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The current required yields on one- and two-year government bonds are i1 = 12% and i2 = 13%. What are the market's expectations of the

The current required yields on one- and two-year government bonds are i1 = 12% and i2 = 13%. What are the market's expectations of the one-year forward rate, f1 (round to two decimals)? a. 15.00%

b. 14.00%

c. 13.50%

d. 14.50%

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