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The prevailing market interest rates for default-free pure discount (zero-coupon) bonds are listed below: Maturity Percent Yield 1 Year 6 2 Years 6.5 3 Years

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The prevailing market interest rates for default-free pure discount (zero-coupon) bonds are listed below: Maturity Percent Yield 1 Year 6 2 Years 6.5 3 Years 7 4 Years 7.5 5 Years 8 Calculate the following rates: the one year forward rate one year from today (ift), the one year forward rate two years from today (zfi), and the two year forward rate two years from today (2f2)

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