According to the Expectations Hypothesis, what is the expected rate of interest on a 1 year loan starting 2 years from now, implied by the following term structure: A 1-year zero coupon bond has a yield to maturity of 2%. A 2-year zero coupon bond has a yield to maturity of 4%. In addition, a 3-year zero coupon bond has a yield to maturity of 4.5%.

9%

4%

6%

None of the given answers is correct

5%

According to the Expectations Hypothesis, what is the expected rate of interest on a 1 year loan starting 2 years from now, implied by the following term structure: A 1-year zero coupon bond has a yield to maturity of 2%. A 2-year zero coupon bond has a yield to maturity of 4%. In addition, a 3-year zero coupon bond has a yield to maturity of 4.5%.

		9%
		4%
		6%
		None of the given answers is correct
		5%