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2 part question if the expected path of 1 year interest rates over the next 3 years is 12, 10 and 8% then the expectations
2 part question
if the expected path of 1 year interest rates over the next 3 years is 12, 10 and 8% then the expectations hypothesis predicts that today's interest rate on a 3 year bond is
Group of answer choices
30%
8%
23%
10%
12%
If the expected path of 1 year interest rates over the next 3 years is 12, 10 and 8%. If the the term premium is 10%, then according to the preferred habitat theory, the long term interest would be
Group of answer choices
30%
15%
20%
25%
35%
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