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The following interest rates exist in the markets for years 1 to 5 respectively: 2%, 2.5%, 3.25%, 4.25% and 5.5%. Calculate the one-year forward starting

  1. The following interest rates exist in the markets for years 1 to 5 respectively: 2%, 2.5%, 3.25%, 4.25% and 5.5%. Calculate the one-year forward starting in year 2 and the two-year forward starting in year 3.

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