= = = The current term structure is given by y1 = 5%, y2 = 5.3%, y3 = 5.5%, with annual compounding (or equivalently, b(0, 1) = 0.9524, b(0, 2) = 0.9019, b(0, 3) = 0.8516.) The forward rate, fo(2, 3), i.e., the one-year rate, two years from now, is a. 5.9% O b. 5.6% C. 5.8% d. 11.8% e. None of the other answers is correct