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A bond pays a $50 coupon once per year. The bond has a face value of $1,000 and matures in 5 years. Spot rates are
A bond pays a $50 coupon once per year. The bond has a face value of $1,000 and matures in 5 years. Spot rates are as follows. Under the expectations hypothesis, what is the expected price of this bond in two years, just after it has made its 2nd coupon payment? 1-year 2.00% 2-year 2.25% 3-year 3.00% 4-year 4.00% 5-year 5.00%
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