The five-year spot rate is not provided here; however, the forward price for a two-year zero-coupon bond

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The five-year spot rate is not provided here; however, the forward price for a two-year zero-coupon bond beginning in three years is known to be 0.8479. The price today of a five-year zero-coupon bond is closest to:

A. 0.7119.

B. 0.7835.

C. 0.9524.

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Fixed Income Analysis

ISBN: 9781119627289

4th Edition

Authors: Barbara S. Petitt

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