The following is a list of prices for zero-coupon bonds with different maturities and par values of $1,000. According to the expectations theory, what is the expected forward rate in the third year?
A)7.00%
B)7.33%
C)9.00%
D)11.19%

Question

The following is a list of prices for zero-coupon bonds with different maturities and par values of $1,000.  According to the expectations theory, what is the expected forward rate in the third year?
A)7.00% 
B)7.33% 
C)9.00% 
D)11.19%

Quizplus · Accepted Answer

The Answer of The following is a list of prices for zero-coupon bonds with different maturities and par values of $1,000.  According to the expectations theory, what is the expected forward rate in the third year?
A)7.00% 
B)7.33% 
C)9.00% 
D)11.19%

The Following Is a List of Prices for Zero-Coupon Bonds