Maturity. YMT

1 year 7%

2 year 8%

3 years. 9%

17. According to the expectation theory, investors a. expect interest rates to rise in future b. expect interest rates to be flat in future c. expect interest rates to fall in future bonds with longer terms as a compensation for lower agdiey e. None of the above options is correct 18. If market expectations are accurate, what will be the YTM of & 2 year 2 yewrs it coupon bond next year? a. 9.01% b. 9.51% c. 10.01% d. 13.02% e. None of the above options is correct 19. Which oftt