Question: Problem 15-17 The current yleld curve for default-free zero-coupon bonds is as follows: Maturity (Years) YTM (8) 106 1 12 3 13 a. What are

What are the implied 1-year forward rates? (Do not round intermediate calculations.

Problem 15-17 The current yleld curve for default-free zero-coupon bonds is as follows: Maturity (Years) YTM (8) 106 1 12 3 13 a. What are the implied 1-year forward rates? (Do not round intermediate calculations. Round your answers to 2 decimal places.) 2s Maturity Forward Rate 2 years % 3 years % b. Assume that the pure expectations hypothesis of the term structure is correct. If market expectations are accurate, what will be the yield to maturity on 1-year zero-coupon bonds next year? Shift upward O Shift downward

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