If the current one year zero coupon bond yield is 4% and the current two year zero coupon bond yield is 3%, then what do investors expect about the one year zero coupon bond yield next year if the expectations hypothesis is true?

A. They expect next year's one year yield to be roughly 2%

Explanation:

Since in the question it is mentioned that if the current one year, the yield of a zero-coupon bond is 4% and the current two years, the yield of a zero-coupon bond is 3% so for the one year it would be 2% approx as it reduced one percentage i.e 1% every one

Therefore in the given case, the correct option is A.

the answer is true.  i do believe this is the answer because of the amount of wrecks people get into each year.  if you double this with avoiding those so said wrecks, that would make you a "skilled" driver.

answer; ///pegged exchange rate with the united states;