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Consider the following information regarding three coupon bonds where coupons are paid annually: Coupon Maturity Price 5.00% 1 $100.00 6.00% 2 $97.44 10.00% 3 $100.82
Consider the following information regarding three coupon bonds where coupons are paid annually:
Coupon Maturity Price
5.00% 1 $100.00
6.00% 2 $97.44
10.00% 3 $100.82
The face value of the bonds is set at $100.
What is the forward rate for the third year ()?
Group of answer choices
14.31%
4.89%
6.50%
9.90%
15.18%
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