Question: The annualized yield on a 3-year security is 9%, the one-year interest rate it 9%, and the one-year ahead forward rate is 2%. The exact

The annualized yield on a 3-year security is 9%, the one-year interest rate it 9%, and the one-year ahead forward rate is 2%.

The exact two-year ahead forward rate is __ percent.

a. 6.1

b. 5.9

c. 9.0

d. 11.1

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