Multiple Choice
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) 7.00%
B) 7.33%
C) 9.00%
D) 11.19%
E) None of the options are correct.
Correct Answer:

Verified
Correct Answer:
Verified
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