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The price of a three-year zero-coupon government bond is

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The price of a three-year zero-coupon government bond is 85.16. The price of a similar four-year bond is 79.81. What is the one-year implied forward rate from year 3 to year 4?

A. 5.4%

B. 5.5%

C. 5.8%

D. 6.7%

Reference no: EM13568815

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