A 4-year,zero coupon Treasury bond sells at a price of $792.0937.A 3-year,zero coupon Treasury bond sells at a price of $851.6137.Assuming the expectations theory is correct,what does the market believe the price of 1-year,zero coupon bonds will be in 3 years? Do not round your intermediate calculations.
A) $1,004.52
B) $781.29
C) $967.31
D) $1,041.72
E) $930.11
Correct Answer:
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