The following is a list of prices for zero coupon bonds with different maturities and par value of $1,000. $$\begin{array} { c c }
\text { Maturity (Years) } & \text { Price } \
\hline 1 & \$ 943.40 \
2 & \$ 881.68 \
3 & \$ 808.88 \
4 & \$ 742.09
\end{array}$$
What is,according to the expectations theory,the expected forward rate in the third year?

Question

The following is a list of prices for zero coupon bonds with different maturities and par value of $1,000. $$\begin{array} { c c } 
\text { Maturity (Years) } & \text { Price } \
\hline 1 & \$ 943.40 \
2 & \$ 881.68 \
3 & \$ 808.88 \
4 & \$ 742.09
\end{array}$$
What is,according to the expectations theory,the expected forward rate in the third year?

Quizplus · Accepted Answer

The Answer of The following is a list of prices for zero coupon bonds with different maturities and par value of $1,000. $$\begin{array} { c c } 
\text { Maturity (Years) } & \text { Price } \
\hline 1 & \$ 943.40 \
2 & \$ 881.68 \
3 & \$ 808.88 \
4 & \$ 742.09
\end{array}$$
What is,according to the expectations theory,the expected forward rate in the third year?

The Following Is a List of Prices for Zero Coupon