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The following is a list of prices for zero-coupon bonds with different maturities and par values of $1,000. Maturity (Years) Price 1 2 3 4

The following is a list of prices for zero-coupon bonds with different maturities and par values of $1,000. Maturity (Years) Price 1 2 3 4 According to the expectations theory, what is the expected forward rate in the third year? 7.00% 7.33% 9.00% $943.40 881.68 808.88 742.09 11.19%

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