What is the expected return, f. for the following investment? Economy Boom Normal Recession Probability 0.3 0.6 0.1 Payoff 20% 15 -5 O 14.5% O 6.0% O 15.5% O 10.0% The interest rate (yield) on 2-year Treasury bonds (T-bonds) is 0.8 percent, the rate on 3- year T-bonds is 1.0 percent, and the rate on 4-year T-bonds is 1.5 percent. Based on the expectations theory, what is the expected one-year interest rate in Year 3? O 3.0% O 1.5% O 1.4% O 1.0% O 1.1% Modern Manufacturing (MM) issued a bond five (5) years ago with a $1,000 maturity value and a coupon rate of interest equal to 5 percent. The bond matures in 15 years. If investors require a return equal to 5.6 percent to invest in similar bonds, what is the current market value of MM's bond? O $1,062.28 O $940.17 $974.15 O $939.65 O $1,046.33