Consider the following $1 000 par value zerocoupon bonds BondYears to MaturityYield to

Question

Consider the following $1,000 par value zero-coupon bonds:

BondYears to MaturityYield to

MaturityA1 5.20%B2 6.70%C3 7.20%D4 7.70%E5 10.25%

The expected 1-year interest rate 2 years from now should be _________.

10.76%

21.07%

8.21%

17.10%

Finance