Suppose that the Expectation Theory is completely correct. People's belief about short- term interest rates in the future is shown as follows. Scenario Probability 1-year interest rate in year 1 1-year interest rate in year 2 1-year interest rate in year 3 1-year interest rate in year 4 A 1/4 3 2 1 2 B 1/4 3 4 5 7 1/4 3 3 4 4 D 1/4 3 6 2 3 a. Calculate today's interest rate on a 4-year zero-coupon Treasury bond. b. What is today's market price of a 4-year zero-coupon Treasury bond with a face value of $3,000? c. If you take the same amount of money (i.e. your answer to part c.) to buy a one- year discount Treasury bond and roll it over for 4 years. Calculate the probability that you will end up with more than $3,000 when you cash out Suppose that the Expectation Theory is completely correct. People's belief about short- term interest rates in the future is shown as follows. Scenario Probability 1-year interest rate in year 1 1-year interest rate in year 2 1-year interest rate in year 3 1-year interest rate in year 4 A 1/4 3 2 1 2 B 1/4 3 4 5 7 1/4 3 3 4 4 D 1/4 3 6 2 3 a. Calculate today's interest rate on a 4-year zero-coupon Treasury bond. b. What is today's market price of a 4-year zero-coupon Treasury bond with a face value of $3,000? c. If you take the same amount of money (i.e. your answer to part c.) to buy a one- year discount Treasury bond and roll it over for 4 years. Calculate the probability that you will end up with more than $3,000 when you cash out