1. Assume that as of today, the annualized interest rate on a three-year security is 8 percent, while the annualized interest rate on a two-year security is 6 percent. Use only this information to estimate the one-year forward rate two years from now.

r1 = 12.11 %

Step-by-step explanation:

One-year forward rate two years from now = (1+0.08)^3 / ( 1+0.06)^2 - 1

r1 = 1. 2597/1.1236 - 1

r1 = 12.11 %

answer: 38.47 is your answer

step-by-step explanation: hope i you and who ever sees this answer have a great rest of your day : )