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Consider the following $1,000 par value zero-coupon bonds: Bond Years to Maturity Yield to Maturity A 1 5.50 % B 2 7.0 % C 3

Consider the following $1,000 par value zero-coupon bonds: Bond Years to Maturity Yield to Maturity

A 1 5.50 %

B 2 7.0 %

C 3 7.50 %

D 4 8.0 %

E 5 10.25 %

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

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