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The zero-coupon bond spot rates are as follows: Maturity Spot Rate 1 year 3% 2 years 4% 3 years 4.5% 4 years 5.5% 5 years
The zero-coupon bond spot rates are as follows: Maturity Spot Rate 1 year 3% 2 years 4% 3 years 4.5% 4 years 5.5% 5 years 6% Compute the three-year forward rate for a loan that starts in one year expressed on an annual basis.
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