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The following are the prices of zero coupon bonds. Par value is $1,000 in each case. Maturity Price 6 months $998 1 year $995 What

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The following are the prices of zero coupon bonds. Par value is $1,000 in each case. Maturity Price 6 months $998 1 year $995 What is the forward rate (expressed as BEY) for a six month period six months hence? [First compute the semiannual yield for each bond.] Approximately 4% Approximately 5% Approximately 6% Approximately 7%

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