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Consider the following $1,000 par value zero-coupon bonds: Bond Years to Maturity Yield to Maturity 1 5.60% B 2 7.10% 3 7.60% D 4 8.10%

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Consider the following $1,000 par value zero-coupon bonds: Bond Years to Maturity Yield to Maturity 1 5.60% B 2 7.10% 3 7.60% D 4 8.10% 5 10.75% m OD The expected 1-year interest rate 2 years from now should be Multiple Choice 11.16% 22029 in Multiple Choice 11.16% 22.02% 8.61% 17.97%

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