Question: Can you please further explain the correct answer (Answer C) 32) $1,000 per zero-coupon bonds (ignore liquidity premiums) BondYearstoMaturityABCDEYieldtoMaturity123456.0017.5017.9988.49110.701 The expected 1-year interest rate 1

Can you please further explain the correct answer (Answer C)

32) $1,000 per zero-coupon bonds (ignore liquidity premiums) BondYearstoMaturityABCDEYieldtoMaturity123456.0017.5017.9988.49110.701 The expected 1-year interest rate 1 year from now should be about A. 6.03% B. 7.50% C. 9.02% D. 10.08% Answer is C

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