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Consider the following $1,000 par value zero-coupon bonds: Bond Years to Maturity Yield to Maturity A 1 6.30% B 2 7.80% 3 8. 30% D

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Consider the following $1,000 par value zero-coupon bonds: Bond Years to Maturity Yield to Maturity A 1 6.30% B 2 7.80% 3 8. 30% D 4. 8.80% E 5 10.25% The expected 1-year interest rate 2 years from now should be Multiple Choice 19.50% 9.31% O 16.25% 11.86%

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