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

Question 1

Multiple Choice

The following is a list of prices for zero-coupon bonds with different maturities and par value of $1,000. The following is a list of prices for zero-coupon bonds with different maturities and par value of $1,000. What is, according to the expectations theory, 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 What is, according to the expectations theory, 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

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