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Year Current spot rates ( ) Implied 2 - year forward rate ! E 2.40% 4 2.60% 5 2.70% 5 2.90% N/A 4.00% N/A 1

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Year Current spot rates ( ) Implied 2 - year forward rate ! E 2.40% 4 2.60% 5 2.70% 5 2.90% N/A 4.00% N/A 1 . Calculate the implied 2 - year forward rate

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