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A one-year zero-coupon bond yields 4.76%. The two-and three-year zero-coupon bonds yield 5.11% and 6.00%, respectively The one-year spot rater(1)=1.88% and the forward price for

A one-year zero-coupon bond yields 4.76%. The two-and three-year zero-coupon bonds yield 5.11% and 6.00%, respectively

The one-year spot rater(1)=1.88% and the forward price for a one-year zero-coupon bond beginning in one year is 0.9777. The spot price of a two-year zero-coupon bond isclosestto:

a.0.9597

b.0.8846

c.0.9666

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