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$1,000 par value zero coupon bonds, ignore liquidity premiums Bond Years to maturity Yield to Maturity A 1 6.00% B 2 7.50% C 3 7.99%

$1,000 par value zero coupon bonds, ignore liquidity premiums

Bond

Years to maturity

Yield to Maturity

A

1

6.00%

B

2

7.50%

C

3

7.99%

D

4

8.49%

E

5

10.70%

The expected one-year interest rate one year from now should be about _________.

6.00%

7.50 %

9.00%

10.00%

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