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The one-year forward rate during year-1 is 5%; the one-year forward rate during year-2 is 6%; the one-year forward rate during year-3 is 7%; the
The one-year forward rate during year-1 is 5%; the one-year forward rate during year-2 is 6%; the one-year forward rate during year-3 is 7%; the one-year forward rate during year-4 is 8%; and the one-year forward rate during year-5 is 9%. What would the yield to maturity be on a four-year zero-coupon bond purchased today?
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