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  3. the yield to maturity on one-year, zero-coupon bon

The yield to maturity on one-year, zero-coupon bonds is 5%. The yield to maturity on...

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Accounting

The yield to maturity on one-year, zero-coupon bonds is 5%. The yield to maturity on two-
year, zero-coupon bonds is 6%. The yield to maturity on three-year, zero-coupon bonds is 6.5%.
The yield to maturity on four-year, zero-coupon bonds is 7%. According to the expectations
hypothesis, what is the markets expectation of the one year interest rate two years from now?

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