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Suppose that all investors expect that interest rates for the 4 years will be as follows: 29 Year 0 1 Forward Interest Rate 4% (today)

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Suppose that all investors expect that interest rates for the 4 years will be as follows: 29 Year 0 1 Forward Interest Rate 4% (today) 5% 6% 7% Skipped 2 3 What is the price of a 3-year zero-coupon bond with a par value of $1,000? Multiple Choice $896.83 $863.92 O None of the options are correct. O $772.18 $765.55

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