Consider the following $1,000 par value zero-coupon bonds: According to the expectations hypothesis, what is the expected

Question:

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

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

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

Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...