What is according to the expectations theory

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Reference no: EM131062879

The following is a list of prices for zero-coupon bonds with different maturities and par value of $1,000.

1 Years $925.16

2 Years $862.57

3 Years $788.66

4 Years $711.00

What is, according to the expectations theory, the expected forward rate in the third year?

Reference no: EM131062879

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