21.) What must be the one-year forward rate in year 4 if the forward rates in years 1, 2 and 3 are 6.1%, 6.5%, and 6.9%, respectively, and the yield on a 4-year zero-coupon bond is 7.9%?

A.) 9.4%

B.) 8.6%

C.) 10.56%

D.) 12.21%

E.) None of the Options are correct.

9.)

According to the expectations hypothesis, an upward-sloping yield curve implies that

Multiple Choice

A.) interest rates are expected to remain stable in the future.

B.) interest rates are expected to decline in the future.

C.) interest rates are expected to increase in the future.

D.) interest rates are expected to decline first, then increase.

E.) interest rates are expected to increase first, then decrease.