Remaining Time: 1 hour, 41 minutes, 12 seconds. Question Completion Status: 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 Moving to another question will save this response. Question 13 (Note: HPR Holding Period Return) Consider two zero coupon bonds: 1-year zero and 2-year zero. According to the liquidity preference hypothesis, the current bond prices are determined such that Expected short interest rate for year 1 - Expected short interest rate for year 2 Expected 1-year HPR on 1-year zero Expected 1-year HPR on 2-year zero Expected 1-year HPR on l-year zero = Expected 1-year HPR on 2-year zero Expected 1-year HPR on 1-year zero > Expected 1-year HPR on 2-year zero Moving to another question will save this response