7. Consider the following $1,000 par value zero-coupon bonds: Bond Years to Maturity Yield to...

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7. Consider the following $1,000 par value zero-coupon bonds: Bond Years to Maturity Yield to Maturity A 1 6.00% B 2 7.49% C 3 7.99% D 4 8.49% E 5 10.70% The expected one-year interest rate two years from now should be A. 7.00% B. 8.00% C. 9.00% D. 10.00%

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