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Consider the following $1,000 par value zero-coupon bonds: Bond Years until Maturity Yield to Maturity A 1 6.0 % B 2 7.0 C 3 7.5

Consider the following $1,000 par value zero-coupon bonds: Bond Years until Maturity Yield to Maturity A 1 6.0 % B 2 7.0 C 3 7.5 D 4 8.0 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.) Interest rate %

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