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The present value of projected swap cash flow payments is computed by multiplying the projected cash flow by the zero coupon discount factor. Suppose that

The present value of projected swap cash flow payments is computed by multiplying the projected cash flow by the zero coupon discount factor. Suppose that a 2-year swap with annual payments is set up such that the spot rates are 2.9% and 3.2%. What is the appropriate discount factor in the 2nd year? Round your answer to 3 decimal places.

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