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1. The following table depicts the yield curve for various bond maturities. Use the yield curve to calculate the one year expected yields ( i

1. The following table depicts the yield curve for various bond maturities. Use the yield curve to calculate the one year expected yields (ie ) using the unbiased expectations theory.

Time to maturity Multi-Year Return One year expected yields(ie )
1 2%
2 3%
3 4%
4 4.5%
5 5.5%

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