Consider a three-year bond with annual coupons (paid annually) of $100 and a face value of $1,000 paid at maturity. Spot rates are observed as follows: r1=9%, r2=10%, r3=11% What is the current price of the bond? What is its yield to maturity (as an effective annual rate)? What is the expected price of the bond in 2 years? under the Pure-Expectations Hypothesis under the Liquidity-Preference Hypothesis assume f3 overstates E[2r3] by 0.5%