A 2-year,zero coupon Treasury bond with a maturity value of $1,000.00 has a price of $908.7596.A 1-year,zero coupon Treasury bond with a maturity value of $1,000.00 has a price of $957.8544.If the pure expectations theory is correct,for what price should 1-year,zero coupon Treasury bonds sell one year from now? Do not round your intermediate calculations.
A) $853.87
B) $872.85
C) $958.23
D) $844.38
E) $948.75
Correct Answer:
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