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The term structure of interest rates is as follows: 1-year rate = 4.8% 2-year rate = 5.5% 3-year rate = 5.9% What does the market

The term structure of interest rates is as follows: 1-year rate = 4.8% 2-year rate = 5.5% 3-year rate = 5.9% What does the market expect the two-year rate to be one year from today? Write your answer out to five decimals. The answer should be 0.06454. How do you get that?

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