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The current yield curre for default-free zero-coupon bonds is as follows: Maturity (years) 1 2 YTM 9.5% 10.5 11.5 3 a. What are the implied
The current yield curre for default-free zero-coupon bonds is as follows: Maturity (years) 1 2 YTM 9.5% 10.5 11.5 3 a. What are the implied one-year forward rates? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Forward Rate Maturity (years) 1 2 YTM 9.5% 10.5% 11.5% % % 3 c-1. If you purchase a two-year zero-coupon bond now, what is the expected total rate of return over the next year? (Hint: Compute the current and expected future prices.) Ignore taxes. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Expected total rate of return c-2. If you purchase a three-year zero-coupon bond now, what is the expected total rate of return over the next year? (Hint: Compute the current and expected future prices.) Ignore taxes. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Expected total rate of return %
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