Required:

a$.$ Assuming that the expectations hypothesis is valid, compute the expected price of the four$-$year zero coupon bond shown below at the end of $($i$)$ the first year; $($ii$)$ the second year; $($iii$)$ the third year; $($iv$)$ the fourth year.

b$.$ What is the rate of return of the bond in years $1,2,3,$ and $4?$ Conclude that the expected return equals the forward rate for each year.

Complete this question by entering your answers in the tabs below.

Required $A$

Assuming that the expectations hypothesis is valid, compute the expected price of the four$-$year zero coupon bond shown below at the end of $($i$)$ the first year; $($ii$)$ the second year; $($iii$)$ the third year; $($iv$)$ the fourth year.

Note: Do not round intermediate calculations. Round your answers to $2$ decimal places.

$\backslash$table$[[\backslash$table$[[$Beginning$],[$of Year$]],$Price of Bond,Expected Price,$],[1,$$$,930\mathrm{.}00,],[2,$$$,902\mathrm{.}97,],[3,$$$,829\mathrm{.}62,],[4,$$$,772\mathrm{.}99,]]$