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The following table shows the prices of $100 zero-coupon bonds, redeemable at par: Term Price 1 $95.23 2 89.84 3 84.56 4 79.21 5 75.24

The following table shows the prices of $100 zero-coupon bonds, redeemable at par:

Term

Price

1

$95.23

2

89.84

3

84.56

4

79.21

5

75.24

6

71.50

Determine the 2-year forward rate, deferred for 3 years.

Options for answers are:

6.50%

12.39%

6.01%

6.09%

5.25%

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