Multiple Choice
Given the yield on a 3 year zero-coupon bond is 7.2% and forward rates of 6.1% in year 1 and 6.9% in year 2,what must be the forward rate in year 3?
A) 7.2%
B) 8.6%
C) 6.1%
D) 6.9%
E) none of these.
Correct Answer:
Verified
Correct Answer:
Verified
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