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QUESTION

Assume that the spot rate on a two year security is 5.5%, while the spot rate on a one year security is 7.

Assume that the spot rate on a two year security is 5.5%, while the spot rate on a one year security is 7.25%. Assuming that interest is compounded, use information to find the forward rate on a security with a maturity of one year one year from now. 

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