Question: Suppose that the current yield on a a two year Treasury note is 1.20 percent and the yield on a three year note is 1.44

Suppose that the current yield on a a two year Treasury note is 1.20 percent and the yield on a three year note is 1.44 percent. What is the implicit one-year forward rate for two years ahead? Why is it higher than 1.44 percent?

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