Implied Forward Rate Calculation

An investor is analyzing the term structure of interest rates to make informed investment decisions. They are particularly interested in the forward rates between different maturities. If the current yield curve is upward sloping, with 1-year rates at 2%, 2-year rates at 2.5%, and 3-year rates at 3%, what is the implied 1-year forward rate one year from now (from year 1 to year 2)?

To find the implied forward rate, the investor will use the formula:

f(1,1) = (1 + y2)^2 / (1 + y1) - 1

where 'y2' is the yield of the 2-year bond and 'y1' is the yield of the 1-year bond.