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On July 1, 2014, zero coupon U.S. Treasuries were priced as follows: Maturity Price July 1, 2015 .928 July 1, 2016 .864 July 1, 2017

On July 1, 2014, zero coupon U.S. Treasuries were priced as follows:

Maturity	Price
July 1, 2015	.928
July 1, 2016	.864
July 1, 2017	.803

Estimate the current forward rates of interest for the second year.

Possible Answers

3.97

4.34

5.30

6.23

7.40

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