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Hi Friends! The yield to maturity on one-year zero-coupon bonds is 7.9%. The yield to maturity on two-year zero-coupon bonds is 8.9%. Required: a. What

Hi Friends!

The yield to maturity on one-year zero-coupon bonds is 7.9%. The yield to maturity on two-year zero-coupon bonds is 8.9%.

Required:

a. What is the forward rate of interest for the second year? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

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