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The price of a zero-coupon bond with $100 face value maturing in three years is $92.83. The price of a zero-coupon bond with $100 face

The price of a zero-coupon bond with $100 face value maturing in three years is $92.83. The price of a zero-coupon bond with $100 face value maturing in five years is $86.63. What is the continuously-compounded forward rate for a loan to be made three years from now and paid back five years from now?

1)

3.900%

2)

4.138%

3)

3.455%

4)

2.675%

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