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Below are the yields to maturity of $1,000 par value zero-coupon bonds at various maturities: Term to maturity (years) Yield to maturity (%) 1 6.00

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Below are the yields to maturity of $1,000 par value zero-coupon bonds at various maturities: Term to maturity (years) Yield to maturity (%) 1 6.00 2. 7.00 3 7.99 4 9.41 5 10.50 The expected one-year interest rate in year 5 should be 14.5% 15.5% 15.0% 16.0%

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