Question: 56 Part I: Learning Objectives, Summary Overview, and Problems 19. The five-year spot rate is not provided here; however, the forward price for a two-year

56 Part I: Learning Objectives, Summary Overview,
56 Part I: Learning Objectives, Summary Overview, and Problems 19. The five-year spot rate is not provided here; however, the forward price for a two-year zero-coupon bond beginning in three years is known to be 0.8479. The price today of a five-year zero-coupon bond is closest to: A. 0.7119. B. 0.7835. C. 0.9524

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