Given the yield on a 3-year zero-coupon bond is 8.2% and forward rates of 6.3% in year 1 and 7.1% in year 2, what must be the forward rate in year 3?
A) 11.84%
B) 11.27%
C) 10.95%
D) 10.87%
E) None of the options are correct.

Question

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The Answer of Given the yield on a 3-year zero-coupon bond is 8.2% and forward rates of 6.3% in year 1 and 7.1% in year 2, what must be the forward rate in year 3?
A) 11.84%
B) 11.27%
C) 10.95%
D) 10.87%
E) None of the options are correct.

Given the Yield on a 3-Year Zero-Coupon Bond Is 8