Question: If the 3-year zero rate is 5% and 4-year zero rate is 6%, what is the forward rate for the 4th year? (All interest rates

If the 3-year zero rate is 5% and 4-year zero rate is 6%, what is the forward rate for the 4th year? (All interest rates are quoted as per annum with continuous compounding)

A.

8%

B.

7%

C.

9%

D.

6%

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