Prices of zero-coupon bonds reveal the following pattern of forward rates: In addition to the zero-coupon bond, investor

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answerhappygod
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Prices of zero-coupon bonds reveal the following pattern of forward rates: In addition to the zero-coupon bond, investor

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Prices of zero-coupon bonds reveal the following pattern of
forward rates:
In addition to the zero-coupon bond, investors also may purchase
a 3-year bond making annual payments of $45 with par value
$1,000.
b) What is the yield to maturity of the coupon
bond? (Round answers to 2 decimal places)
c) Under the expectations hypothesis, what is the expected
realized compound yield of the coupon bond? (Round
answers to 2 decimal places)
d) If you forecast that the yield curve in 1 year will be flat
at 6.5%, what is your forecast for the expected rate of return on
the coupon bond for the 1-year holding period?
Thank you for your help!
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