Question: The term structure for zero-coupon bonds is currently: Next year at this time, you (as apposed to a market concensus) expect it to be: a.

The term structure for zero-coupon bonds is currently: Next year at this time, you (as apposed to a market concensus) expect it to be: a. What do you expect the rate of return to pe over the coming year on a 3-year zero-coupon bond b. Under the expectations theory, what yields to maturity does the market expect to observe on 1-a a. What do you expect the rate of return to be over the coming year on a 3-year zero-coupon bond? b. 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? c. Is the market's expectation of the return on the 3-year bond greater or less than yours
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