$1,000 par value zero-coupon bonds (ignore liquidity premiums).
Bond Years to Maturity Y...
Business, 24.03.2020 02:49 mmimay3501
$1,000 par value zero-coupon bonds (ignore liquidity premiums).
Bond Years to Maturity Yield to Maturity
A 1 6.00%
B 2 7.50%
C 3 7.99%
D 4 8.49%
E 5 10.70%
The expected 1-year interest rate 1 years from now should be
a. 6%
b. 7.5%
c. 9.02%
d. 10.70%
Answers: 3
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