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Given the yield on a 3 year zero-coupon bond is 7% and forward rates of 6% in year 1 and 6.5% in year 2, what
Given the yield on a 3 year zero-coupon bond is 7% and forward rates of 6% in year 1 and 6.5% in year 2, what must be the forward rate in year 3? a.8.6% b.8.5% c.7.2% d.6.9%
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Essentials of Investments
Authors: Zvi Bodie, Alex Kane, Alan Marcus
9th edition
78034698, 978-0077502287, 77502280, 978-0078034695
