According to the expectations hypothesis

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Consider the following $1,000 par value zero-coupon bonds: Bond Years to Maturity YTM(%) A 1 6.1%

Bond A - Years to maturity = 1. YTM % = 6.1%

Bond B - Years to maturity = 2. YTM % = 7.1%

Bond C - Years to maturity = 3. YTM % = 7.6%

Bond D - years to maturity = 4. YTM % = 8.1%

According to the expectations hypothesis, what is the expected 1-year interest rate 3 years from now? (Do not round intermediate calculations. Round your answer to 2 decimal places. Omit the "%" sign in your response.)

Interest rate % = ? %

Reference no: EM131361065

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