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

Bond	Years until Maturity	Yield to Maturity
A	1	6.00	%
B	2	7.00
C	3	7.50
D	4	8.00

a. According to the expectations hypothesis, what is the markets expectation of the one-year interest rate three years from now? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

b. What are the expected values of next years yields on bonds with maturities of (a) 1 year; (b) 2 years; (c) 3 years? (Do not round intermediate calculations. Round your answer to 2 decimal places.)