15-5

Consider the following $1,000 par value zero-coupon bonds: According to the expectations hypothesis, what is the market's expectation of the yleld curve one year from now? Specifically, what are the expected values of next year's ylelds on bonds with maturitles of (a) one year? (b) two years? (c) three years? (Do not round Intermedlate calculations. Round your answers to 2 declmal places.)