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5. The following are current prices of zero coupon bonds: (assume par values are all $1,000) Maturity (years) | Price 943.40$ 881.60$ 824.10$ 767.77$ 3

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5. The following are current prices of zero coupon bonds: (assume par values are all $1,000) Maturity (years) | Price 943.40$ 881.60$ 824.10$ 767.77$ 3 4 What is the YTM of the 3-year zero-coupon bond? a. b. What is the zero yield curve out to 4 years? (i.e. spot rates for 1, 2, 3 and 4 years) What is the 1-year forward rate in the third year (i.e. in two years' time)? C. d. According to the Expectations Hypothesis, what is the expected future short rate in the third year (i.e. in two years' time)

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