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14. Assuming the expectations theory is the correct theory of the term structure of interest rates, calculate the interest rates in the term structure for

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14. Assuming the expectations theory is the correct theory of the term structure of interest rates, calculate the interest rates in the term structure for maturities of one to three years given the following series of one-year expected interest rates over the next three years: (5 points) Year One-Year Expected Interest Rate 5% 7% 9% Rate on One-Year Bond Rate on Two-Year Bond Rate on Three-Year Bond %

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