Question: Year 1: Forward Rate is 4.6 % Year 2: Forward Rate is 4.9 % Year 3: Forward Rate is 5.2 % Year 4: Forward Rate

Year 1: Forward Rate is 4.6 % Year 2: Forward Rate is 4.9 %

Year 3: Forward Rate is 5.2 %

Year 4: Forward Rate is 5.5 %

Year 5: Forward Rate is 6.8 %

What is the yield to maturity of a 3-year bond?

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