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Consider the following $1,000 par value zero-coupon bonds: Bond Year to Maturity Yield to Maturity A 1 8.10% B 2 5.40% C 3 8.50% D
Consider the following $1,000 par value zero-coupon bonds:
Bond | Year to Maturity | Yield to Maturity |
A | 1 | 8.10% |
B | 2 | 5.40% |
C | 3 | 8.50% |
D | 4 | 9.50% |
E | 5 | 11.74% |
The expected one-year interest rate three years from now should be __________.
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