27. Term-structure theories (S3.4) The one-year spot interest rate is r1 = 5% and the two-year rate...

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27. Term-structure theories (S3.4) The one-year spot interest rate is r1 = 5% and the two-year rate is r2 = 6%. If the expectations theory is correct, what is the expected one-year interest rate in one year’s time?

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Principles Of Corporate Finance

ISBN: 9781264080946

14th Edition

Authors: Richard Brealey, Stewart Myers, Franklin Allen, Alex Edmans

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