Problem 15-10 The term structure for zero-coupon bonds is currently: Maturity (Years) 1 2 3 YTM (%) 4.2% 5.2 6.2 Next year at this time, you expect it to be: Maturity (Years) 1 2 3 YTM (%) 5.2% 6.2 7.2 a. What do you expect the rate of return to be over the coming year on a 3-year zero-coupon bond? (Round your answer to 1 decimal place.) Answer is complete and correct. Rate of return 6.2 % b-1. Under the expectations theory, what yields to maturity does the market expect to observe on 1- and 2-year zeros at the end of the year? (Round your answers to 2 decimal places.) X Answer is complete but not entirely correct. Maturity YTM 1 6.21 % 2 8.23 X % b-2. Is the market's expectation of the return on the 3-year bond greater or less than yours? Greater Less