Question: If the four-year zero coupon rate (1R4 ) is 8% and the five-year zero coupon rate (1R5 ) is 9%, what should be the expected

If the four-year zero coupon rate (1R4 ) is 8% and

If the four-year zero coupon rate (1R4 ) is 8% and the five-year zero coupon rate (1R5 ) is 9%, what should be the expected one-year interest rate in year 5 (E((5R1 )) under the Unbiased Expectation hypothesis? A. 9% B. 12% O C. 10% D. 13% O E. 11%

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