Question: Given the yield on a 3-year zero-coupon bond is 8.6% and forward rates of 5.5% in year 1 and 6.3% in year 2, what must

Given the yield on a 3-year zero-coupon bond is 8.6% and forward rates of 5.5% in year 1 and 6.3% in year 2, what must be the forward rate in year 3?

A.14.2% B.13.8% C.14.0% D.8.6%

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