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The spot rate for year 1 is 7% and the forward rate for year one to two is 10%. The two-year discount factor is _____

The spot rate for year 1 is 7% and the forward rate for year one to two

is 10%. The two-year discount factor is _____ .

A. Show the Formula (0.2 point) B. Show the Steps and calculation (0.3 point) C. Present the Answers (0.1 point)

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