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Consider the following $1,000 par value zero-coupon bonds: Bond Year to Maturity Yield to Maturity A 1 7.80% B 2 5.70% C 3 9.42% D
Consider the following $1,000 par value zero-coupon bonds:
Bond | Year to Maturity | Yield to Maturity |
A | 1 | 7.80% |
B | 2 | 5.70% |
C | 3 | 9.42% |
D | 4 | 8.72% |
E | 5 | 11.54% |
The expected one-year interest rate three years from now should be __________.
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