Question: I need help with this question: A one-year zero-coupon bond yields 3.0% and the 2 and 3-year zero-coupon bonds yield 4.0 % and 5.0%, respectively.

I need help with this question: A one-year zero-coupon bond yields 3.0% and the 2 and 3-year zero-coupon bonds yield 4.0 % and 5.0%, respectively. The rate for a two-year loan beginning in one year is closest to:

1) 6.0%

2) 8.0%

3) 9.0%

4) 5.0%

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