Question: If the two- year forward rate one year from now is 2%. What does that indicate 2% is the annual rate that can be locked

If the two- year forward rate one year from now is 2%. What does that indicate

2% is the annual rate that can be locked in today for holding investment for two years where the investment starts one year from today

2% is the annual rate that can be locked in one year from today for holding investment for two years

2% is the annual rate that can be locked in today for holding investment for one year which starts two years from today

none of the answers are correct

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