Question
The maturities and yields of three zero-coupon bonds are as follows: Maturity YTM 1 4% 2 5% 3 6% What is the forward rate for
The maturities and yields of three zero-coupon bonds are as follows:
| Maturity | YTM |
| 1 | 4% |
| 2 | 5% |
| 3 | 6% |
What is the forward rate for year 3, that is, the 1-year rate two years from now? Please express your answer in percent rounded to the nearest basis point.
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Finance Applications And Theory
Authors: Marcia Cornett, Troy Adair, John Nofsinger
1st Edition
0073382256, 9780073382258
