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Consider the following $1,000 par value zero-coupon bonds: Bond Year to Maturity Yield to Maturity A 1 6.10% B 2 5.30% C 3 9.78% D
Consider the following $1,000 par value zero-coupon bonds: Bond Year to Maturity Yield to Maturity A 1 6.10% B 2 5.30% C 3 9.78% D 4 9.40% E 5 10.72% The expected one-year interest rate three years from now should be __________.
Answer Choices:
a. ) 9.52
b. ) 7.22
c. ) 10.52
d. ) 8.27
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