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The WSJ reports that the YTM of 1-, 2-, and 3-year default-free zero-coupon bonds are 7%, 7.5%, and 8.2%, respectively. Based on the expectations theory,

The WSJ reports that the YTM of 1-, 2-, and 3-year default-free zero-coupon bonds are 7%, 7.5%, and 8.2%, respectively. Based on the expectations theory, what should be the implied 1-year forward rate, one year from today?

A. 7.79%
B. 8.12%
C. 7.91%
D. 8.00%

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