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You would like to know what the market expects the 1 year rate will be three years from now. You observe the following yield curve for discount, or zero-coupon, bonds: Maturity Yield to Maturity 1 6.7% 2 7.9% 3 8.4% 4 10% What is the forward rate between year 3 and 4? [Please express your answer as a percent without the percentage sign so for 10.32% please enter 10.32]

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Financial Management, Finance

Category:- Financial Management
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