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The currcnt yiekd curve for dcfault-frcc zcro-ooupon bonds is 83 folows Matunity tyears) YTM 2.3...

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The currcnt yiekd curve for dcfault-frcc zcro-ooupon bonds is 83 folows Matunity tyears) YTM 2.3 a. What are the implied one-year forward rates? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Maturity (years) TM Forward Rate 10.3% 11.3% 12.3% b. Asaume that the pure expectations hypothesis of the term structure is correct. If market expectations are accurate, what will the pure yield curve (that is, the yields to maturity on one- and two-year zero-coupon bonds) be next year? There will ba a shift upwards in next year's curve. There will bo a shift downwards in noxt yoars curve Thore will be na changc in next ycar's cur Him Compute the current and e cted future prices o not ?? nd intermed ate cac ons Round c-1 you purc ase a two-year zero coupon bond now what 18 the expected total rate of return over the next year? your answer to 2 decimal places.) gnore taxes Expected total rate of returrn c-2. If you purchase a three-year zero-coupon bond now, what is the expected total rate of return over the next year? (Hint Compute the current and expected future prices.) lgnore taxes. (Do not round Intermedlate calculations. Round your answer to 2 decimal places.) Expected of return

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