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The Prices of 1,2,3,and 4-Year Zero Coupon Government Bonds Are

Question 17

Multiple Choice

The prices of 1,2,3,and 4-year zero coupon government bonds are 95.42,90.36,85.16,and 78.81,respectively.What is the implied 2-year forward rate between years 2 and 4?


A) 4.8%
B) 5.2%
C) 5.5%
D) 6.4%

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