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The yields of four zero-coupon bonds of varying maturities are as follows: Maturity YTM 1 6.1% 2 6.2% 3 6.3% 4 6.4% If you expect
The yields of four zero-coupon bonds of varying maturities are as follows:
Maturity YTM
1 6.1%
2 6.2%
3 6.3%
4 6.4%
If you expect the implied term structure to be the same next year as it is this year, what is the expected return on the 3-year zero coupon bond over the coming year? Please express your answer in percent, rounded to the nearest basis point.
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