A 2-Year,zero Coupon Treasury Bond with a Maturity Value of $1,000

Multiple Choice

A 2-year,zero coupon Treasury bond with a maturity value of $1,000 has a price of $873.4387.A 1-year,zero coupon Treasury bond with a maturity value of $1,000 has a price of $938.9671.If the pure expectations theory is correct,for what price should 1-year,zero coupon Treasury bonds sell one year from now?

A) $797.54
B) $839.52
C) $883.70
D) $930.21
E) $976.72