You observe the following term structure of zero coupon bonds:

Term to Maturity (years)

1

2

3

4

Effective annual YTM

6.1%

6.2%

6.3%

6.4%

(a) If you believe that the term structure next year will be the same as today's, calculate the return on (i) 1-year zero and (ii) the 4-year zero.

(b) Which bond provides a greater expected 1-year return?

(c) Redo answers to parts(a) and (b) if you believe in the expectations hypothesis.