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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 forward rate for a two-year loan beginning in

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 forward rate for a two-year loan beginning in one year isclosestto:

a.6.529%

b.6.625%

c.6.699%

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