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Formula clearly instead of using excel and financial

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Reference no: EM132154585

Where the current one-year short-term rate is 7%, the two-year bond rate is 8% pa, and the 3-year bond rate is 9% pa, what is the one year forward rate in years two and three?

Could you explain the process, formula clearly instead of using excel and financial calculator?

Reference no: EM132154585

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