Consider the following, a 7-year zero-coupon bond carries an annual yield of 6.75% and a 6-; year zero coupon bond carries an annual yield of 5.87%. Calculate the 1 year forward rate 6 years from now. Assume annual compounding.
Consider the following, a 7-year zero-coupon bond carries an annual yield of 6.75% and a 6-; year zero coupon bond carries an annual yield of 5.87%. Calculate the 1 year forward rate 6 years from now. Assume annual compounding. A.6.31%; B.12.03%; C.12.19%; D.12.62%