Three Zero Coupon Bonds With Face Values Of 10 000 Are Currently Selling For The

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Three zero-coupon bonds with face values of $10,000 are currently selling for the following amounts: Years to Maturity Price 1 $9804 2 $9427 3 $8978 Assume the Expectations Theory is correct. What are the expected (“forward”) one-year interest rates in year 2 1 1 ( ) e t i  and 3 1 2 ( ) e t i  ?

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