Question: What is the implied forward rate? The rate from 0 to 3 years maturity is 5%. The rate from 0 to 2 years maturity is

What is the implied forward rate? The rate from 0 to 3 years maturity is 5%. The rate from 0 to 2 years maturity is 3%. What is the implied forward rate from years 2 to 3?

A. 9.1%
B. 5.9%
C. 3.9%
D. 12.3%

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