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Suppose that all investors expect that interest rates for the 4 years will be as...

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Finance

Suppose that all investors expect that interest rates for the 4 years will be as follows:

Year Forward Interest Rate

0 4 % (today)

1 5 %

2 6 %

3 7 %

What is the yield to maturity of a 3-year zero-coupon bond?

Group of answer choices

None of the options are correct.

9.00%

7.00%

4.00%

5.00%

Answer & Explanation Solved by verified expert
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