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The One-Year Interest Rate Is 4

Question 74

Multiple Choice

The one-year interest rate is 4.80% and the two-year interest rate is 5.13%. What is the one-year interest rate one year from now? Assume the rates are effective annual rates.


A) 5.02%
B) 5.23%
C) 5.46%
D) 5.51%
E) 5.74%

Correct Answer:

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