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The following are yield to maturities on zero coupon bonds. Maturity 1 2 3 Yield 2% 2.5% 3% a) calculate the implied yearly forward rates.

The following are yield to maturities on zero coupon bonds.

Maturity	1	2	3
Yield	2%	2.5%	3%

a) calculate the implied yearly forward rates.

b) The value of a four-year zero-coupon bond three years from today is $765. What would be the value of a seven-year zero-coupon bond today?

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