Question: Assuming that the expectations hypothesis is valid, compute the expected price path of the 4-year bond ($1,000 face value) using the data given below as

 Assuming that the expectations hypothesis is valid, compute the expected price

Assuming that the expectations hypothesis is valid, compute the expected price path of the 4-year bond ($1,000 face value) using the data given below as time passes. What is the rate of return of the bond in each year? (Do not round intermediate calculations. Round your answers to 2 decimal places. Omit the "% & $" sign in your response.) Maturity (years) 1 2 3 4 Price of Bond $953.40 903.47 852.62 787.66 Expected Rate of Return Beginning of Year 1 2 Expected Price $ 3 4

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