The following is a list of prices for zero coupon bonds with different maturities and par value of $1,000. What is, according to the expectations theory, the expected forward rate in the third year? Maturity (Years) Price

1 $925.16

2 $862.57

3 $788.66

4 $711.00

2. ACME offers a 7% coupon bond with annual payments. The yield to maturity is 5.85% and the maturity date is 9 years. What is the market price of a $1,000 face value bond?