8. a. Assuming that the expectations hypothesis is valid, compute the expected price of the 4-year bond in Problem 7 at the end of (i) the first year; (ii) the second year; (iii) the third year; (iv) the fourth year. 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. 7. The following is a list of prices for zero-coupon bonds of various maturities. Maturity (years) Price of Bond 1 $943.40 2 898.47 3 847.62 4 792.16 a. Calculate the yield to maturity for a bond with a maturity of (i) one year; (ii) two years; (iii) three years; (iv) four years. b. Calculate the forward rate for (i) the second year; (ii) the third year; (iii) the fourth year