Question

57. Consider the following $1,000 par value zero-coupon bonds: Bond YTM . TYM A . 1...

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

Bond YTM . TYM

A . 1 . 6.00%

B . 2 . 7.00%

C . 3 . 8.32%

D . 4 . 8.49%

E . 5 . 10.70%



The expected one-year interest rate three years from now should be __________.
a. 7.00%
b. 8.00%
C. 9.00%
d. 10.00%

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