Consider the following $1,000 par value zero-coupon bonds:

Bond	Years until Maturity	Yield to Maturity
A	1	10.00	%
B	2	11.00
C	3	11.50
D	4	12.00

a. 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: (answer this)

b. What are the expected values of next years yields on bonds with maturities of (a) 1 year; (b) 2 years; (c) 3 years? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Maturity Years, YTM 1. %

2. %

3. %