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The Following Is a List of Prices for Zero-Coupon Bonds

Question 7

Multiple Choice

The following is a list of prices for zero-coupon bonds with different maturities and par values of $1,000. The following is a list of prices for zero-coupon bonds with different maturities and par values of $1,000. According to the expectations theory, what is the expected forward rate in the third year? A) 7.23% B) 9.37% C) 9.00% D) 10.9% According to the expectations theory, what is the expected forward rate in the third year?


A) 7.23%
B) 9.37%
C) 9.00%
D) 10.9%

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