Question: Year 1-Year Forward Rate 1 4.6% 2 4.9% 3 5.2% 4 5.5% 5 5.8% What is the yield to maturity of a 1-year bond?

Year 1-Year Forward Rate

1 4.6%

2 4.9%

3 5.2%

4 5.5%

5 5.8%

What is the yield to maturity of a 1-year bond?

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