19. Suppose that a bond that will mature in two years has a face value of $1000 and 20% coupon rate (coupons are paid annually. The one year spot rate is 13% and the second year's forward rate is 12%. According to the pure expectation hypothesis, the price of the bond is A) $1125.16 B) $1000 C) $1325.50 D) $1200 Consider the following zero-coupon yields on default-free securities: Maturity (years) YTM% 5.80 5.50 5.20 5.00 4.80 6. The forward rate for year 2 (the forward rate quoted today for an investment that begins in one year and matures in two years) is closest to: A) 5.50% B) 5.80% C) 5.20% D) 5.65% 7. The annualized forward rate quoted today for an investment that begins in one year and matures in four years is closest to (round to two decimals) A) 4.50% B) 4.8090 C) 4.73% D)-0.08%