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Suppose that all investors expect that the interest rates for the 4 years will be as follows. What is the price of a 3-year zero

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Suppose that all investors expect that the interest rates for the 4 years will be as follows. What is the price of a 3-year zero coupon bond with par=$1,000? Year 1-Year Forward rate 1 4.6% 2 5.0% 3 5.4% 4 5.8% a. $816.49 b. $1,000.00 c. $863.85 O d. $854.04

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