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A zero-coupon bond has a face value of $1,000 and matures in four years. The year-two forward rate is 4%. The four-year spot rate is

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A zero-coupon bond has a face value of $1,000 and matures in four years. The year-two forward rate is 4%. The four-year spot rate is 10%. The expected spot rate at the end of year 2 on a bond maturing in year 4 is 7%. Compute the year-one spot rate? Possible Answers A 18% but 19% but 20% but

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