Today a 4-year zero coupon bond sells at a price that gives a yield to maturity of 3.57%. Today a 5-year zero coupon bo

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answerhappygod
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Today a 4-year zero coupon bond sells at a price that gives a yield to maturity of 3.57%. Today a 5-year zero coupon bo

Post by answerhappygod »

Today a 4-year zero coupon bond sells at a price that gives a
yield to maturity of 3.57%. Today a 5-year zero coupon bond
sells at a price that gives a yield to maturity of 3.81%.
What is the implied forward rate of return (that is, the interest
per year) a one-year zero coupon bond purchased four years from
today? (value in decimal)
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