Question: The current term structure for default-free zero-coupon bond is as followsL Maturity (Years) YTM 1 10.5% 2 10% 3 9.75% Assume that the zero-coupon bonds

The current term structure for default-free zero-coupon bond is as followsL

Maturity (Years) YTM

1 10.5%

2 10%

3 9.75%

Assume that the zero-coupon bonds have a face value of $1000.

What is the implied one-year forward rate for year 2?

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