One two and three year maturity default-free zero-coupon
One, two and three year maturity, default-free, zero-coupon bonds have yields-to-maturity of 7%, 8% and 9% respectively. What is the implied one-year forward rate, one year from today?
Answer
a.2.0%
b.8.0%
c.9.0%
d.11.1%
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