Today, there is a treasury bond, with four years of maturity, F = $1000, coupon rate of 7%, and annual coupon payments. Using the information on the slide provided, compute the expected price of this treasury bond one year from today, based on the PEH. Keep the final answers in two decimal places.

The pure expectations hypothesis The yield curve one year in the future, as forecasted according to the PEH Forecasting the yield curve one year ahead using the PEH - expected term structure next year: f1,2=7.01%;f1,3=8.02%;f1,4=9.02%;f1,5=10.02%;f1,6=11.01%; These rates can be used in DCF in slide #48 to computer P1