Information processing theory on forecasting errors state that the information presented to the forecaster has a lesser effect on the forecasting process depending upon the forecaster's perception of this information. investors give more weight to recent experiences than prior beliefs and information, and therefore create forecasts that are biased. an individual's existing personal beliefs are likely to dominate the forecasting process. investors are too influenced by external factors and therefore, are prone to forecasting using irrelevant information. Treasury spot interest rates are as follows: What is the price of a risk-free zero-coupon bond with 3 years to maturity and a face value of $1,000 (in $ )