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Can you round up the answers with 2 decimals? (The numbers input in the answers are INCORRECT) fyi The yield to maturity on one-year zero-coupon

Can you round up the answers with 2 decimals?

(The numbers input in the answers are INCORRECT) fyi

image text in transcribed The yield to maturity on one-year zero-coupon bonds is \8.1. The yield to maturity on two-year zero-coupon bonds is \9.1. Required: a. What is the forward rate of interest for the second year? (Do not round intermediate calculations. Round your answer to 2 decimal places.) b. If you believe in the expectations hypothesis, what is your best guess as to the expected value of the short-term interest rate next year? (Do not round intermediate calculations. Round your answer to 2 decimal places.) c. If you believe in the liquidity preference theory, is your best guess as to next year's short-term interest rate higher or lower than in (b)? Lower Higher

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