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The current yield curve for default-free zero-coupon bonds is as follows. What are the implied 1 year forward rates? Maturity YTM Forward Rates 1 10.5%

The current yield curve for default-free zero-coupon bonds is as follows.

What are the implied 1 year forward rates?

Maturity

YTM

Forward Rates

1

10.5%

2

11.5%

3

12.5%

What is the expected two year rate next year?

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