4. Consider the following $1000 par value zero-coupon bonds: Bond Years until Maturity YTM (%) A 1 4.3 B 2 5.3 3 5.8 D 4 6.3 1) According to the expectations hypothesis, what is the market's expectation of the one-year interest rate three years from now? (6 marks) 2) The yield curve is upward-sloping. Explain whether or not you can conclude that investors expect short-term interest rates to rise. (12 marks)