Problem 4 The current yield curve for default-free zero-coupon bonds is as follows: Maturity (years) YTM 1 10% 2 11% 12% a. What are the implied one-year forward rates for years 2 and 3? b. What would be the shape of the yield curve according to the Expectations hypothesis? I C. If you believe in the liquidity preference theory, what would be your guess as to the upper limit on the short-term interest rate expected for the third year? Question 1 Explain the different forms of market efficiency and how they relate to the different forms of stock value analysis and insider trading