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Question 6 Given the yield on a 3-year zero-coupon bond is 8.6% and forward rates of 5.5% in year 1 and 6.3% in year 2,

Question 6 Given the yield on a 3-year zero-coupon bond is 8.6% and forward rates of 5.5% in year 1 and 6.3% in year 2, what must be the forward rate in year 3? A. 14.2% B. 13.8% C. 14.0% D. 8.6%

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