Question
Consider the following $1,000 par value zero-coupon bonds: Bond Years until Maturity Yield to Maturity A 1 5.6% B 2 6.6 C 3 7.1 D
Consider the following $1,000 par value zero-coupon bonds:
| Bond | Years until Maturity | Yield to Maturity |
| A | 1 | 5.6% |
| B | 2 | 6.6 |
| C | 3 | 7.1 |
| D | 4 | 7.6 |
| According to the expectations hypothesis, what is the markets expectation of the one-year interest rate three years from now? (Do not round intermediate calculations. Round your answer to 2 decimal places.) |
| Interest rate | % |
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A Guide To Starting Your Hedge Fund
Authors: John Thompson, Erik Serrano Berntsen
1st Edition
0470519401, 978-0470519400
