QUESTION 38 A one-year zero-coupon bond yields 3%, while two- and three-year zero-coupon bonds yield 4% and 5%, respectively. The rate that can be locked in for a two-year loan beginning in one year is closest to: a) 6.01% b) 7.03% c) 12.4% QUESTION 39 A one-year zero-coupon bond yields 3%, while two and three-year zero-coupon bonds yield 4% and 5%, respectively, Given that the forward price for a two-year zero-coupon bond beginning in three years is 0.859, the current price of a five-year zero-coupon bond is closest to: *) 0.687 b) 0.742 c) 0.864