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3. The following is a list of prices for zero-coupon bonds with different maturities and par value of $1,000. Suppose the interest rate is compounded

3. The following is a list of prices for zero-coupon bonds with different maturities and par value of $1,000. Suppose the interest rate is compounded once per year. Answer the following questions: (a) What is, according to the expectations theory, the one-year interest rate in the second year? (7 marks) (b) What is, according to the expectations theory, the one-year interest rate in the third year? (7 marks) (c) What is, according to the expectations theory, the one-year interest rate in the forth year (6 marks)

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