Compute the forward rates expected to prevail

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You observe that: equivalent risk 1-year, 2-year, 3-year, and 4 year zero-coupon bonds with face values each of $1000 trade currently at $950, $870, $790 and $700, respectively.

(a) Compute the forward rates expected to prevail during the 2d, 3"d, and 4th years.

Reference no: EM133121712

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