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

Select one:

a.

11.2%%

b.

7.3%

c.

9.0%

d.

7.0%

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