You find a two year STRIPS with and interest rate of 5.8 percent, and a three-year STRIPS with an interest rate of 6.3 percent. What is the implied one-year interest rate in two years? Assume the rates are effective annual rates.
A) 7.42%
B) 5.21%
C) 7.31%
D) 7.83%
E) 6.91%

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The Answer of You find a two year STRIPS with and interest rate of 5.8 percent, and a three-year STRIPS with an interest rate of 6.3 percent. What is the implied one-year interest rate in two years? Assume the rates are effective annual rates.
A) 7.42%
B) 5.21%
C) 7.31%
D) 7.83%
E) 6.91%

You Find a Two Year STRIPS with and Interest Rate