According to Figure 8, what happened to your holding period returns if you purchased long-run bonds in i) 1994 and ii) 2010? Explain why this might be so. Is Figure 9 consistent with the pure expectations theory? Explain. ---- A L L FIGURE 8 Treasury yields 10yr 5yr 1yr mo 1990 1995 2000 2005 2010 FIGURE 9 Zero-coupon bond returns Maturity Average holding period return Standard error Standard deviation N 5.83 6.15 6.40 6.40 6.36 M 0.42 0.54 0.69 0.85 0.98 2.83 3.65 4.66 5.71 6.58 Note: Continuously compounded one year holding period returns on zero-coupon bonds of varying maturity. Annual data from CRSP 1953-97