Assume that as of today the annualized two year interest, Ask an Expert

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Assume that as of today the annualized two year interest rate is 12 percent and one year interest rate is 9 percent. A three year security has an annualized interest rate of 14 percent. Based on the pure expectation theory, what is the one year forward rate two years from now?

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Financial Management, Finance

Category:- Financial Management
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