13. The one-year spot interest rate is r 1 5% and the two-year rate is r...

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13. The one-year spot interest rate is r 1 ⫽ 5% and the two-year rate is r 2 ⫽ 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: 9780071314176

10th Global Edition

Authors: Richard Brealey

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