The YTM on a 2 year zero coupon bond is 5% and the YTM on a 1

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The YTM on a 2 year zero coupon bond is 5% and the YTM on a 1 year zero coupon bond is 3%. What does the no-arbitrage condition tell you about the rate you can lock in today on a 1 year zero coupon bond that starts next year (the one-year forward rate)?

Posted Date: May 19, 2024 03:03 PM

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The YTM on a 2 year zero coupon bond is 5% and the YTM on a 1

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