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Given the following patterms of forward rates: Year 1 Forward Rate 5% Year 2 Forward Rate 6% Year 3 Forward Rate 6.5% If one year

Given the following patterms of forward rates:

Year 1 Forward Rate 5%

Year 2 Forward Rate 6%

Year 3 Forward Rate 6.5%

If one year from now the term structure of interest rates changes so that it looks exactly the same as it does today, what would be your holding period return if you purchased a 3-year zero coupon bond today and held it for one year?

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