What is the implied one-year forward rate

Reference no: EM13289868

One, two and three year maturity, default-free, zero-coupon bonds have yields-to-maturity of 7%, 8% and 9% respectively. What is the implied one-year forward rate, one year from today?

Answer

a.2.0%

b.8.0%

c.9.0%

d.11.1%

Reference no: EM13289868

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