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Question 1

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Use the following information for questions
There are three zero coupon bonds with a face value of $10 million.One matures one year from now and is selling at $9,433,962.30.The second matures two years from now and is selling for $8,573,388.20.The third matures three years from now and is selling at
$7,117,802.50.
-What is the implied forward rate between time 2 and time 3?


A) 12%
B) 15%
C) 18%
D) 21%
E) 24%

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