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The one year spot rate = 2.75% and the one-year forward rate deferred one year = 2.75%. Compute the two year spot rate. 2.75% 3.75%

The one year spot rate = 2.75% and the one-year forward rate deferred one year = 2.75%. Compute the two year spot rate.

2.75%

3.75%

4.75%

5.75%

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