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Bond A and Bond B are zero-coupon bonds. Bond A is a one-year bond and has a yield- to-maturity of 6.00%. Bond B is a

  1. Bond A and Bond B are zero-coupon bonds. Bond A is a one-year bond and has a yield-

to-maturity of 6.00%. Bond B is a two-year bond and has a yield-to-maturity of 7.50%. The

expected one-year interest rate one year from now is .

  1. 6.00%
  2. 7.50%
  3. 9.00%
  4. 10.00%

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