Multiple Choice
The annualized yield on a three-year security is 13 percent; the annualized two-year interest rate is 12 percent, while the one-year interest rate is 9 percent. The forward rate two years ahead is ____ percent.
A) 1.8
B) 9.0
C) 15.0
D) none of the above
Correct Answer:
Verified
Correct Answer:
Verified
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