Question: The term structure for zero-coupon bonds is currently. Next year at this time, you expect it to be: Bond with face value $100. a. What

The term structure for zero-coupon bonds is currently. Next year at this time, you expect it to be: Bond with face value $100. 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 2 decimal places. Omit the "\%" sign in your response.) Rate of return % 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? (Do not round intermediate calculations. Round your answers to 2 decimal places. Omit the "\%" sign in your response.) b-2. Is the market's expectation of the return on the 3 -year bond greater or less than yours? Greater Less
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