A one-year zero-coupon bond yields 4.0%. The two- and three-year zero-coupon bonds yield 5.0% and 6.0%, respectively.
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A one-year zero-coupon bond yields 4.0%. The two- and three-year zero-coupon bonds yield 5.0% and 6.0%, respectively.
The rate for a one-year loan beginning in one year is closest to:
A. 4.5%.
B. 5.0%.
C. 6.0%.
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The rate for a oneyear loan beginning in one year is closest to B 50 This is because the oneyear zer...View the full answer
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