27. Look again at the spot interest rates shown in Problem 25. What can you deduce about...

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27. Look again at the spot interest rates shown in Problem 25. What can you deduce about the one-year spot interest rate in three years if . . .

a. The expectations theory of term structure is right?

b. Investing in long-term bonds carries additional risks?

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Principles Of Corporate Finance

ISBN: 9780071314176

10th Global Edition

Authors: Richard Brealey

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