Question: The current yield curve for the default-free zero coupon bonds is as follows: Maturity (years) YTM(%) 1 10% 2 11% The implied 1-year forward rate

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

Maturity (years) YTM(%)

1 10%

2 11%

The implied 1-year forward rate is...?

a)10.05%

b)11.55%

c)12.01%

d)13.07%

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