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Suppose that all investors expect that interest rates for the 4 years will be as follows: Year Forward Interest Rate 0 (today) 5 70 2

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Suppose that all investors expect that interest rates for the 4 years will be as follows: Year Forward Interest Rate 0 (today) 5 70 2 99 10 3 What is the yield to maturity of a 3-year zero-coupon bond? A. 9.00% B. 6.99% c. 7.03% D. 7.49% O E. None of the options

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