1. Suppose we know the prices of zero-coupon bonds for different maturities with par values all being $1,000. The price of a one-year zero coupon bond is $959.63; The price of a two-year zero- coupon bond is $865.20; The price of a three-year zero-coupon bond is $777.77; The price of a four-year zero-coupon bond is $731.74. What is, according to the liquidity performance hypothesis, the expected forward rate in the third year if is 1%? What is the yield to maturity on a three-year zero-coupon bond?