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The following is a list of prices for zero-coupon bonds with different maturities and par value of $1,000. 2 3 4 Term to Maturity

The following is a list of prices for zero-coupon bonds with different maturities and par value of $1,000. 2 3 4 Term to Maturity (Year) Price $920 $860 $790 $710 Given the liquidity risk premium is 3%, what is the expected future spot rate in the third year according to the liquidity preference hypothesis? O a. 11.86% O b. 5.86% O c. 9.37% O d. 8.86%

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