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The following is a list of prices for zero-coupon bonds with different maturities and par values of $1,000. Maturity (Years) - Price 1 $ 943.40

The following is a list of prices for zero-coupon bonds with different maturities and par values of $1,000.

Maturity (Years) - Price 1 $ 943.40 2 881.68 3 808.88 4 742.09

According to the expectations theory, what is the expected forward rate in the third year? A) 9.00% B) 11.19% C) 7.00% D) 7.33% E) None of the options are correct.

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