A 5-year zero coupon bond with a $1000 face value is trading at a yield...
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Finance
A 5-year zero coupon bond with a $1000 face value is trading at a yield to maturity of 4.64%.
You check the yield curve and find the 1 year spot rate is 5.46%, the 2 year spot rate is 6.67%, the 3 year spot rate is 6.97% and the 4 year spot rate is 4.44%.
Assuming that the expectations hypothesis is correct, what will the price of the 5-zero coupon bond be when it has 1 year left to maturity.
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