2. Assuming that the expectations hypothesis is valid, compute the price of the four-year bond shown below at the end of the first year, (m) the second year: (i) the third year; (iv) the fourth year. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Price of Bond Expected Price Beginning of Year 1 $ $ 2 980.90 914.97 843.12 771 76 3 4 $ b. What is the rate of return of the bond in years 1, 2, 3, and 4? Conclude that the expected return equals the forward rate for each year (Do not round intermediate calculations. Round your answers to 2 decimal places.) Beginning of Year Expected Rate of Return 9. 2 196 96 4 96 mheducation.com/ext/map/index.html?conrcontexternal browserlounchil hits courses utrgv.edu.252 webappsportar Help Save LE .. Assuming that the expectations hypothesis is valid, compute the price of the four-year bond shown below at the end of the first year, the second year, (ii) the third year: (iv) the fourth year. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Price of Bond Expected Price $ Beginning of Year 1 2 3 4 $ 980.90 914.97 843 12 771 76 V $ b. What is the rate of return of the bond in years 1, 2, 3, and 4? Conclude that the expected return equals the forward rate for each year (Do not round Intermediate calculations. Round your answers to 2 decimal places.) Beginning of Year Expected Rate of Return % % 2 % 3 % 4