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Question
$1,000 par value zero-coupon bonds (ignore liquidity premiums)
| Bond | Years to Maturity | Yield to Maturity |
| A | 1 | 6.00% |
| B | 2 | 7.50% |
| C | 3 | 7.99% |
| D | 4 | 8.49% |
| E | 5 | 10.70% |
The expected 2-year interest rate 3 years from now should be ________.
A) 9.55%
B) 11.74%
C) 14.89%
D) 13.73%
Answer
This answer is hidden. It contains 74 characters.
Related questions
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