Question
Given the prices of zero-coupon bonds of four maturities below, calculate the forward rate for the second year (end of year 1 to end of
Given the prices of zero-coupon bonds of four maturities below, calculate the forward rate for the second year (end of year 1 to end of year 2). Please enter your answer in percent, rounded to the nearest basis point.
| Maturity | Price |
| 1 | $943.40 |
| 2 | $898.47 |
| 3 | $847.62 |
| 4 | $792.16 |
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Fundamentals Of Investing
Authors: Scott B. Smart, Lawrence J. Gitman, Michael D. Joehnk
14th Edition
0135175216, 978-0135175217
