What is the expected 1-year interest rate 3 years

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Reference no: EM132828262

Consider the following $1,000 par value zero-coupon bonds:

Bond Maturity (years) Yield to Maturity

A 1 5%

B 2 6%

C 3 6.5%

D 4 7%

According to the expectations hypothesis, what is the expected 1-year interest rate 3 years from now?

Reference no: EM132828262

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