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Consider the following $1,000 par value zero-coupon bonds: Bond Years to Maturity YTM(%) A 1 6.3% B 2 7.3 C 3 7.8 D 4 8.3
Consider the following $1,000 par value zero-coupon bonds:
| Bond | Years to Maturity | YTM(%) |
| A | 1 | 6.3% |
| B | 2 | 7.3 |
| C | 3 | 7.8 |
| D | 4 | 8.3 |
According to the expectations hypothesis, what is the expected 1-year interest rate 3 years from now?
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