Question: The current yield curve for default free zero coupon bonds is as follows: Maturity (Years) YTM 1 10% 2 11% 3 12% What are the

The current yield curve for default free zero coupon bonds is as follows:

Maturity (Years)

YTM

1

10%

2

11%

3

12%

What are the implied one-year forward rates for the years 2 and 3?

Question 12 options:

A.

11.01% and 14.02%
B.

11.01% and 12.04%
C.

12.01% and 12.04%
D.

12.01% and 14.02%

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