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2. The return-to-maturity expectations hypothesis states that the return generated by holding a bond for term t to T will equal the expected return generated

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2. The return-to-maturity expectations hypothesis states that the return generated by holding a bond for term t to T will equal the expected return generated by continually rolling over a bond whose term is a period evenly divisible into T -t. Explain why the above relationship can be expressed formally as DUT) = Et(1 + r.)(1 + rt+1) (1+1T-1)]

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