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Consider the following $1,000 par value zero-coupon bonds: Bond Yield to Maturity Years to Maturity 1 A B 2 3 4 6.30% 7.80% 8.30% 8.80%

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Consider the following $1,000 par value zero-coupon bonds: Bond Yield to Maturity Years to Maturity 1 A B 2 3 4 6.30% 7.80% 8.30% 8.80% 10.25% D E 5 The expected 1-year interest rate 2 years from now should be

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