Question: Th e fi ve-year spot rate is not given above; however, the forward price for a two-year zero-coupon bond beginning in three years is known

Th e fi ve-year spot rate is not given above; however, the forward price for a two-year zero-coupon bond beginning in three years is known to be 0.8479. Th e price today of a fi ve-year zero-coupon bond is closest to:

A . 0.7119.

B . 0.7835.

C . 0.9524.

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