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Today is January 1, 2009, and according to the results of a recent survey, investors expect the annual interest rates for the years 2012-2014 to
Today is January 1, 2009, and according to the results of a recent survey, investors expect the annual interest rates for the years 2012-2014 to be as follows.... 2012-5%, 2013-4%, 2013-3%...... The rates given here include the risk-free rate and appropriate risk premiums. Today a 3 year bond0that is, a bond that matures on December 31, 2011-has an interest rate equal to 6%. What is the yield to maturity for bonds that mature at the end of 2012, 2013, and 2014.
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