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One year interest rate is currently 1.5% and expected to rise to 1.4%, 1.8%., 2.6% and 3.0% for next four years. Based on the expectation

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One year interest rate is currently 1.5% and expected to rise to 1.4%, 1.8%., 2.6% and 3.0% for next four years. Based on the expectation hypothesis, what would be the value of five-year zero coupon bond with a $1,000 par value? A. $888 B. $877 C. $912 D. $903 E. $894

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