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Consider the following $1,000 par value zero-coupon bonds: Bond Years to Maturity Yield to Maturity A 1 6.70 % B 2 8.20% C 3 8.70%

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

Bond Years to Maturity Yield to Maturity

A 1 6.70 %

B 2 8.20%

C 3 8.70%

D 4 9.20%

E 5 10.50%

The expected 1-year interest rate 2 years from now should be _________.

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