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How can one invest today at the forward rate that applies to the period that starts one year from today to two years from today? That is, the forward rate from year t=1 to t=2?By providing a loan that starts in one year and is repaid in two yearsBy buying a 2-year bond and selling a 1-year bond with the same couponBy buying a 1-year bond and then after a year reinvesting in a further 1-year bondBy providing a loan that starts today and is repaid in two yearsBy buying a 1-year bond and selling a 2-year bond with the same coupon
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