Question: The term structure for zero-coupon bonds is currently: Next year at this time, you expect it to be: a. What do you expect the rate

 The term structure for zero-coupon bonds is currently: Next year at

The term structure for zero-coupon bonds is currently: Next year at this time, you expect it to be: 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 1 decimal place.) 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? (Round your answers to 2 decimal places.)

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