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thank you The yield to maturity on one-year zero-coupon bonds is 8%. The...

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The yield to maturity on one-year zero-coupon bonds is 8%. The yield to maturity on two-year zero-coupon bonds is 9% a. What is the forward rate of interest for the second year? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Forward rate of interest b. If you believe in the expectations hypothesis, what is your best guess as to the expected value of the short-term interest rate next year? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Short-term interest rate c. I you beleve in the liquidity preference theory, is your best guess as to next years short term interest rate higher or lower than in (b)? O Lower O Higher eBook & Resources References 10-07 Analyze the Worksheet yield crve at any time, and impute

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