Use the Table for the Question(s)below

question 106

Multiple Choice

Use the table for the question(s) below.
Consider the following zero-coupon yields on default-free securities:
-The forward rate for year 5 (the forward rate quoted today for an investment that begins in four years and matures in five years) is closest to:

• A)4.0%.
• B)3.8%.
• C)4.8%.
• D)4.2%.

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