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QUESTION 10 1 points Suppose that the current one-year zero-coupon rate is 1.5% and that the expected one-year rate during each of the subsequent 4
QUESTION 10 1 points Suppose that the current one-year zero-coupon rate is 1.5% and that the expected one-year rate during each of the subsequent 4 years is 2.0%, 2.5%, 3.0%, and 3.5%. Under the pure expectations theory, what is the current 5-year zero-coupon interest rate? QUESTION 11 1 points Suppose that the one-year, two-year, and three-year zero-coupon rates are 5.59, 6.596, and 9.0%. Based on the pure expectations theory, what is the expected one-year rate during year 3? You should use the approximation from class. QUESTION 12 1 points Suppose that the one-year, two-year, and three-year zero-coupon rates are 5.5%, 6.5%, and 9.0%. What is the current price of a three-year, 12%-coupon bond with a face value of $1,000. The bond pays coupons annually
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