ou observe the following yield curve:

(Round your final answers to 2 decimal places. Enter percentages "as-is", without the % sign.)

a) If you believe that the yield curve next year will be the same as todays, calculate the holding period return (1-year) on the 1-year Zero and the 4-year Zero.

1-year Zero HPR % ? and 4-year Zero HPR % ?

b) Recalculate the return on the 4-year zero if you believe in the expectations hypothesis.

4-year Zero HPR %