Question: What is the forward rate for year 3 (the forward rate quoted today for an investment that begins in two years and matures in three

What is the forward rate for year 3 (the forward rate quoted today for an investment that begins in two years and matures in three years)? What can you conclude about forward rates when the yield curve isflat?

Maturity (years) Zero-coupon YTM 4 5.0% 4.0% 5.5% 5.5% 4.5%

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