Question: table [ [ , Maturity ( Years ) , Price of Rond ] , [ , 1 , $ 9 4 3 . 4
tableMaturity YearsPrice of Rond$
Assuming that the expectations hypothesis is valid, compute the expected price path of the year bond in the previous problem as time passes. What is the rate of return of the bond in each year? Show that the expected return equals the forward rate for each year.
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