What is the expected rate on a three-year bond

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Question - Suppose the price of the three-year zero coupon bond is $800 and the six-year zero coupon bond is $600.

What is the implied forward rate on a 3-year bond which will start at the end of year 3?

According to the liquidity premium theory of the term structure, what is the expected rate on a 3-year bond at the end of year 3?

Reference no: EM132744550

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