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please answer question i, ii and iii thank you very much for your help a. You observe the following term structure of discrete yields to

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please answer question i, ii and iii

thank you very much for your help

a. You observe the following term structure of discrete yields to maturity: Time to Maturity Annual YTM 6.10% 6.20% 1-year Zero Coupon Bond 2-yearZero Coupon Bond 3-yearZero Coupon Bond 4-yearZero Coupon Bond 6.30% 6.40% i. If you believe that the term structure next year will be the same as today's, calculate the return on a 1-year zero coupon bond and a 4-year zero coupon bond. [4 marks] ii. Which zero coupon bond provides the greatest expected 1-year return? [3 marks] iii. Redo your answers to (i) and (ii) if you believe in the expectations hypothesis [5 marks]

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