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According to the expectations theory, what would be the price of a two-year zero at the beginning of year 3? Assume the following list of

According to the expectations theory, what would be the price of a two-year zero at the beginning of year 3?

Assume the following list of prices for zero-coupon bonds with different maturities and par value of $1,000. Maturity (Years) 1 2 3 4 Prices $985.00 $925.50 $875.00 $800.50

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