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You borrow 75 today and repay 78 in one year. You also lend 75 today, and receive 82.3 in two years. i. Calculate the 1-year
You borrow 75 today and repay 78 in one year. You also lend 75 today, and receive 82.3 in two years.
i. Calculate the 1-year and 2-year interest rates.
ii. Calculate the forward interest rate.
N.B. Please show explanation and steps of calculations
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