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You observe the prices of the following zero-coupon bonds with a par value of $1,000. Compute the one-year forward rates for 1) One year from

You observe the prices of the following zero-coupon bonds with a par value of $1,000. Compute the one-year forward rates for 

1) One year from today, 

2) Two years from today, and 

3) Three years from today, respectively. (Assuming annual compounding). 



Maturity 1 2 3 4 Bond Price $892.86 $800.76 $726.27 $683.01 

Maturity 1 2 3 4 Bond Price $892.86 $800.76 $726.27 $683.01

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