The prices of default-free zero-coupon bonds, each with the face value of $100,000, with various maturities...
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The prices of default-free zero-coupon bonds, each with the face value of $100,000, with various maturities (in years) are as follows: Maturity (years) 1 2 3 Price 97,845.62 94,289.33 90,603.47 To the nearest basis point, what are the forward (break-even) short-term interest rates-the implied short-term rates for one-year zero-coupon bond investments for years 2 and 3? The prices of default-free zero-coupon bonds, each with the face value of $100,000, with various maturities (in years) are as follows: Maturity (years) 1 2 3 Price 97,845.62 94,289.33 90,603.47 To the nearest basis point, what are the forward (break-even) short-term interest rates-the implied short-term rates for one-year zero-coupon bond investments for years 2 and 3?
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