Question: Assume that interest rates cannot be negative. If the yield on 4 year zero coupon government bond is 5.10 pa, then the yield on 3

Assume that interest rates cannot be negative. If the yield on 4 year zero coupon government bond is 5.10 pa, then the yield on 3 year zero coupon government bond cannot be larger than -------------?

a. 5.05%

b. 5.10%

c. 6.86%

d. 5.95%

please show calculation (not excel)

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