Question: THE ANSWER IS NOT 10.62% The yield to maturity on one-year zero-coupon bonds is 8.3%. The yield to maturity on two-year zero-coupon bonds is 9.3%.

THE ANSWER IS NOT 10.62% The yield to maturity on one-year zero-coupon THE ANSWER IS NOT 10.62%

The yield to maturity on one-year zero-coupon bonds is 8.3%. The yield to maturity on two-year zero-coupon bonds is 9.3%. a. What is the forward rate of interest for the second year? (Do not round intermediate calculations. Round your answer to 2 de places.) Forward rate of interest b. If you believe in the expectations hypothesis, what is your best guess as to the expected value of the short-term interest rate n year? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Short-term interest rate

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