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Consider the following $1,000 par value zero-coupon bonds: Bond Years to Maturity Yield to Maturity A 1 6.00% B 2 7.50% C 3 7.99% D

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

Bond Years to Maturity Yield to Maturity

A 1 6.00%

B 2 7.50%

C 3 7.99%

D 4 8.49%

E 5 10.70%

The expected two-year interest rate three years from now should be __________

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