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YIELD CURVE FOR ZERO COUPON BONDS RATED AA Maturity YTM Maturity YTM Maturity YTM 1 year 8.00% 7 year 9.15% 13 year 10.45% 2 year

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YIELD CURVE FOR ZERO COUPON BONDS RATED AA Maturity YTM Maturity YTM Maturity YTM 1 year 8.00% 7 year 9.15% 13 year 10.45% 2 year 8.11% 8 year 9.25% 14 year 10.65% 3 year 8.20% 9 year 9.35% 15 year 10.75% 4 year 8.50% 10 year 9.47% 16 year 10.95% 5 year 8.75% 11 year 9.52% 17 year 11.00% 6 year 8.85% 12 year 9.77% 18 year 11.25% There are no liquidity premiums. To the nearest basis point what is the expected interest rate on a one year AA zero coupon bond purchased eight years from today

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