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Your are given the following rates: 3-year spot rate 5.5% 1-year forward rate, one year from today 5.4% 1-year forward rate, two years from today

Your are given the following rates:

3-year spot rate 5.5%

1-year forward rate, one year from today 5.4%

1-year forward rate, two years from today 6.2%

Analyse and determine the 1-year spot rate to the nearest basis point

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