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Maturity (years) Price ($) 925.15 862.57 788.66 711.00 Yield (%) 8.09 7.67 8.24 3 4 8.90 9. According to the expectations theory, what is the

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Maturity (years) Price ($) 925.15 862.57 788.66 711.00 Yield (%) 8.09 7.67 8.24 3 4 8.90 9. According to the expectations theory, what is the expected forward rate in the third year? (a) (b) 7.23% 9.39% 9.00% 10.90% (d) 10. What is the annualized rate of return over years one through three for a loan? (b) (C) (d) 17.32% 8.65% 8.32% 9.13%

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