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Assuming that the expectntions hypothesis is valid, compute the expected price of the four-year zero coupon bond shown below at he end of the first

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Assuming that the expectntions hypothesis is valid, compute the expected price of the four-year zero coupon bond shown below at he end of the first year, (ith the second year; fia the third year. (y ) the fourth yeat (Do not round intermediate calculations. Round nour answers to 2 decimal places.) b. What is the rate of teturn of the bond in years 1, 2,3, and 4 ? Conciude that the expected return equals the forward rate for each yeat. (Do not round intermediate calculations. Round your answers to 2 decimal places.)

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