Question: Suppose that risk-free zero interest rates with continuous compounding are as follows: (Note that these rates are all for time periods which begin at time

Suppose that risk-free zero interest rates with continuous compounding are as follows: (Note that these rates are all for time periods which begin at time zero and run x years into the future.) Zero Rates Maturity (Years) Rate (% per annum)

1 1.26

2 1.33

3 1.91

4 2.12

5 2.93

Calculate the two-year forward rate for the third and fourth year. That is, at t=2, what will be the two-year rate? Report your answer in percentage terms rounded to two decimal places without the % sign.

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