Question: Example 1 A zero - coupon Treasury bond with an expiration of 1 year trades at 9 5 % of par, while a zero -

Example 1 A zero-coupon Treasury bond with an expiration of 1 year trades at 95% of par, while a zero-coupon Treasury bond with an expiration of 18 months trades at 93% of par. What is the Treasury forward rate for a loan that starts in 1 and ends in 1.5 years?

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