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Find all statement ( s ) that is ( are ) correct: a . Under the Expectations Hypothesis, if you buy a 1 0 -

Find all statement(s) that is(are) correct:
a. Under the Expectations Hypothesis, if you buy a 10-year risk-free zero-coupon bond, and hold it
for 4 years, you can expect to earn today's 4-year zero rate, z04, per annum over the four years.
b. In reality, if you buy a 10-year risk-free zero-coupon bond, and hold it for 4 years, your return per
annum over the four years is uncertain and risky.
c. If you buy a 10-year risk-free zero-coupon bond, and hold it for 10 years until maturity, your
return per annum is guaranteed to be today's 10-year zero rate, z0,10.
A.a,b,c
B. b
C.a,b
D. b, c
E. c
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