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What is the YTM, Expected total rate of return over two years and three years? The current yield curve for defaultfree zerocoupon bonds is as

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What is the YTM, Expected total rate of return over two years and three years?

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The current yield curve for defaultfree zerocoupon bonds is as follows: Maturity (year's) YTM 1 18.6% 2 11.6 3 12.6 [ a. What are the implied oneyear forward rates? {Do not round intermediate calculations. Round your answers to 2 decimal ml -__I _-EI _-EI b. Assume that the pure expectations hypothesis of the term structure is correct If market expectations are accurate, what wi pure yield curve {that is, the yields to maturity on one and twoyear zer0{oupon bonds] be next year? d . If you purchase a two - year zero - coupon bond now , what is the Expected total rate of return over the next year ? ( Hint. Compute the current and Expected future prices . ) Ignore taxes . I Do not round intermediate calculations . Round your answer to 2 decimal place Expected total rate of return & . If you purchase a three - year zero - coupon bond now , what is the Expected total rate of return over the next year ? ( Hint Compute* current and Expected future prices_ ! Ignore taxes . I Do not round intermediate calculations . Round your answer to 2 decimal place Expected total rate of return

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