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Consider the following $1,000 par value zero-coupon bonds: Bond Years to Maturity Yield to Maturity 4.8% 5.7% 5.9% 3 6.8% 14 8.1% The expected 1-year

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Consider the following $1,000 par value zero-coupon bonds: Bond Years to Maturity Yield to Maturity 4.8% 5.7% 5.9% 3 6.8% 14 8.1% The expected 1-year interest rate 2 years from now should be 5.9% 8.4% 6.3% O7.8% B

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