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The following is a list of prices for zero-coupon bonds with different maturities and par value of $1,000. 1 Years $925.16 2 Years $862.57 3
The following is a list of prices for zero-coupon bonds with different maturities and par value of $1,000.
1 Years $925.16
2 Years $862.57
3 Years $788.66
4 Years $711.00
What is, according to the expectations theory, the expected forward rate in the third year?
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