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The yield to maturity on one-year zero coupon bonds is 4.76%. The yield to maturity on two-year zero coupon bonds is 6.78%. Required: a. What

The yield to maturity on one-year zero coupon bonds is 4.76%. The yield to maturity on two-year zero coupon bonds is 6.78%. Required:

a. What is the forward rate of interest for the second year? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

b. According to the expectations hypothesis, what is the expected value of the one-year interest rate for next year? (Do not round intermediate calculations.

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