According to the pure expectations theory of interest rates, how much do you expect to pay for

Question:

According to the pure expectations theory of interest rates, how much do you expect to pay for a one-year STRIPS on February 15, 2009? What is the corresponding implied forward rate? How does your answer compare to the current yield on a one-year STRIPS? What does this tell you about the relationship between implied forward rates, the shape of the zero yield curve, and market expectations about future spot interest rates?

Coupon
A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a...