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A 4-Year,zero Coupon Treasury Bond Sells at a Price of $762.8952.A

Question 11

Multiple Choice

A 4-year,zero coupon Treasury bond sells at a price of $762.8952.A 3-year,zero coupon Treasury bond sells at a price of $827.8491.Assuming the expectations theory is correct,what does the market believe the price of 1-year,zero coupon bonds will be in 3 years?


A) $921.54
B) $939.97
C) $958.77
D) $977.94
E) $997.50

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