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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)3 % 1 4

Suppose that all investors expect that interest rates for the 4 years will be as follows:

Year Forward Interest Rate
0 (today)3 %
1 4 %
2 5 %
3 6 %

What is the yield to maturity of a 3-year zero-coupon bond?

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