The following is a list of prices for zero-coupon bonds


The following is a list of prices for zero-coupon bonds with different maturities and par value of $1,000.

1 Years     $925.16

2 Years     $862.57

3 Years     $788.66

4 Years     $711.00

What is, according to the expectations theory, the expected forward rate in the third year?

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Financial Management: The following is a list of prices for zero-coupon bonds
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