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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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