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4. The following table shows the price of $1000 face value 1-year, 2-year, 3-year, 9-year and 10-year US Treasury zero coupon bonds as of March
4. The following table shows the price of $1000 face value 1-year, 2-year, 3-year, 9-year and 10-year US Treasury zero coupon bonds as of March 2018. Use pure expectations hypothesis to determine: a. the interest rate for the 1-year bond b. the expected interest rate on a 1-year bond one year from now, in 2? year 3? b. the expected interest rate on a 1-year bond two years c. the expected interest rate on a 1-year bond nine from in now year in from 10? now years year 1-y 982.51 3-y 9-yr 10-yr 2-yr U.S. Treasury (March 2018) 965.31 948.41 783.17 759.11 What is the bond market telling us about the future path of 1-year interest rates
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