32) $1,000 per zero-coupon bonds (ignore liquidity premiums) Bond Yield to Maturity A 6.00% B 7.50% 7.99% 8.49% 10.70% C D E A. 6.03% B. 7.50% C. 9.02% D. 10.08% Years to Maturity 1 2 The expected 1-year interest rate 1 year from now should be about Answer is C 3 4 5

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