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Please show work by hand 1. The prices of five zero-coupon par bonds are shown in the table below. Each bond has a face value

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Please show work by hand

1. The prices of five zero-coupon par bonds are shown in the table below. Each bond has a face value of $1. Find the two-year forward rate, deferred for one year. (A) 4.2% (B) 4.5% (C) 5.2% (D) 5.6% (E) 6.0%

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