Question: Please solve it for a correct answer. Suppose you have the following information about spot rates: 1.6% for two years and 3.0% for four years.

Please solve it for a correct answer.

Suppose you have the following information about spot rates: 1.6% for two years and 3.0% for four years. The rate of a one-year borrowing contract starting three years from today is 4.8%. What is the rate of a one-year borrowing contract starting two years from today, i.e., f2,3? 4.04% 2.81% 4.80% 7.32% 3.77% 9.03%

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