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The following are the prices for zero coupon bonds with par value of $1,000, maturing at par: Determine the one year forward rate for year
The following are the prices for zero coupon bonds with par value of $1,000, maturing at par:
Determine the one year forward rate for year 3 (i.e., the one year effective rate during year 3).
Time to Maturity 1, 2, 3, 4
Price 943.40, 898.47, 847.62 , 792.16
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