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Consider the prices of $100 zero-coupon bonds redeemable at par. Maturity (in years) Price 90 85 Determine one-year forward rate for the year 4. (A)

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Consider the prices of $100 zero-coupon bonds redeemable at par. Maturity (in years) Price 90 85 Determine one-year forward rate for the year 4. (A) 6.0% (B) 6.3% (C) 6.6% (D) 6.9% (E) 7.2%

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