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You have the following expected (1-year) forward rates. Year Rate 1 -0.50% 2 1.40% . 3 3.90% 4 7.70% . 5 9.40% If these rates

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You have the following expected (1-year) forward rates. Year Rate 1 -0.50% 2 1.40% . 3 3.90% 4 7.70% . 5 9.40% If these rates hold true, what would be the expected yield on a 3 year bond, purchased at the END of year 2? O a cannot be calculated with the provided data Ob 6.98% Oc. 4.31% Od 1.58% O e 7.00%

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