Question: Problem 1 (20 points) The current yield curve for default free zero coupon bonds is as follows: Maturity (Years) 1 2 3 YTM 8% 9%

 Problem 1 (20 points) The current yield curve for default free

Problem 1 (20 points) The current yield curve for default free zero coupon bonds is as follows: Maturity (Years) 1 2 3 YTM 8% 9% 10% (5 points) A. What are the implied one-year forward rates for the years 2 and 3

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