The WSJ reports that the YTM of 1-, 2-, and 3-year default-free zero-coupon bonds are 7%, 7.5%, and 8.2%, respectively. Based on the expectations theory, what should be the implied 1-year forward rate, one year from today?

	A.	8.12%
	B.	7.91%
	C.	7.79%
	D.	8.00%

You are considering a corporate bond that pays interest semi-annually, has a par value of $1,000, matures in 8 years, and has a YTM of 6%. If the bond's coupon rate is 7%, what is the current yield of the bond?

A. 3.29%

B. 3.18%

C. 6.59%

D. 6.47%

The WSJ reports that the rates on 4- and 5-year Treasuries are 5.84% and 5.78%, respectively. Based on the expectations theory, what is the expected 1-year Treasury spot rate in year 5?

	A.	5.68%
	B.	6.08%
	C.	5.81%
	D.	5.54%