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 zerocoupon bond? (Round your answer to 1 decimal place.) Rate of return \% b-1. 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? (Round your answers to 2 decimal places.) c. Is the market's expectation of the return on the 3 year bond greater or less than yours

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