A one-year STRIPS sells at an interest rate of 3.15% and a two-year STRIPS sells at an interest rate of 3.88%. What is the implied one-year forward rate? Assume the rates are effective annual rates.
A)4.44%
B)4.50%
C)4.54%
D)4.57%
E)4.62%

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The Answer of A one-year STRIPS sells at an interest rate of 3.15% and a two-year STRIPS sells at an interest rate of 3.88%. What is the implied one-year forward rate? Assume the rates are effective annual rates.
A)4.44%
B)4.50%
C)4.54%
D)4.57%
E)4.62%

A One-Year STRIPS Sells at an Interest Rate of 3