3. Which of the following securities has the median Macaulay duration of the five (at 10% interest rate)? A. A consol (i.e. a perpetual) B. A 10-year pure discount bond. C. A 10-year annuity. D. A 10-year conventional, noncallable bond with an annual coupon of $100 (face = $1000) E. A perpetual annuity, the payments of which are expected to grow at a constant rate of 2%. 4. The expectations hypothesis states that the forward (or break-even) rate over second period is A. set to the spot rate expected to prevail over the second period. B. equal to the first period spot rate. C. always greater than the spot rate in period one. D. always set below the spot rate over the second period. E. always set above the spot rate over the second period