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The following is a list of yields for zero-coupon bonds with different maturities and par values of $1,000. Maturity (years) Yield to Maturity 1 8.09%
The following is a list of yields for zero-coupon bonds with different maturities and par values of $1,000.
Maturity (years) | Yield to Maturity |
1 | 8.09% |
2 | 7.67% |
3 | 8.24% |
4 | 8.90% |
According to the expectations theory, what is the expected forward rate in the third year?
Group of answer choices
7.23%
10.90%
9.37%
9.00%
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