Given the yield on a 3 year zero-coupon bond is 7.2% and forward rates of 6.1% in year 1 and 6.9% in year 2,what must be the forward rate in year 3?
A)8.4%
B)8.6%
C)8.1%
D)8.9%
E)none of the above.

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The Answer of Given the yield on a 3 year zero-coupon bond is 7.2% and forward rates of 6.1% in year 1 and 6.9% in year 2,what must be the forward rate in year 3?
A)8.4%
B)8.6%
C)8.1%
D)8.9%
E)none of the above.

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