A one-year STRIPS sells at an interest rate of 3.20% and a two-year STRIPS sells at an interest rate of 3.90%. What is the implied one-year forward rate? Assume the rates are effective annual rates.
A)4.20%
B)4.30%
C)4.40%
D)4.50%
E)4.60%

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The Answer of A one-year STRIPS sells at an interest rate of 3.20% and a two-year STRIPS sells at an interest rate of 3.90%. What is the implied one-year forward rate? Assume the rates are effective annual rates.
A)4.20%
B)4.30%
C)4.40%
D)4.50%
E)4.60%

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