Question: Using the information in the table, according to the expectations theory, the expected forward rate in the second year? Maturity (Years) Price 1 R943.40 2

Using the information in the table, according to the expectations theory, the expected forward rate in the second year? Maturity (Years) Price 1 R943.40 2 R881.68 3 R808.88 4 R742.09 Question 7Select one: a. 7.3% b. 9.0% c. 11.2%% d. 7.0%

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