Question
Consider the following $1,000 par value zero-coupon bonds: Bond Years to Maturity YTM(%) A 1 5.3% B 2 6.3 C 3 6.8 D 4 7.3
| Consider the following $1,000 par value zero-coupon bonds: |
| Bond | Years to Maturity | YTM(%) |
| A | 1 | 5.3% |
| B | 2 | 6.3 |
| C | 3 | 6.8 |
| D | 4 | 7.3 |
| According to the expectations hypothesis, what is the expected 1-year interest rate 3 years from now? (Do not round intermediate calculations. Round your answer to 2 decimal places. Omit the "%" sign in your response.) |
| Interest rate | % |
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Routledge Handbook Of Financial Technology And Law
Authors: Iris Chiu, Gudula Deipenbrock
1st Edition
0367344149, 978-0367344146
