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Today the annualized two-year interest rate is 12.7 percent, and the one-year interest rate is 10.9 percent. What is the one-year forward rate according to

Today the annualized two-year interest rate is 12.7 percent, and the one-year interest rate is 10.9 percent. What is the one-year forward rate according to the pure expectations theory given that investors are indifferent among security maturities?

15.15 percent

14.53 percent

13.62 percent

16.54 percent

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