Multiple Choice
Assuming annual compounding,the prices of a one-year 4% coupon bond and a two-year 5% coupon bond are $101 and $99,respectively.The forward rate between one and two years is:
A) 4.5%
B) 5.0%
C) 6.8%
D) 8.3%
Correct Answer:
Verified
Correct Answer:
Verified
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