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3. Consider the following $1,000 par value zero-coupon bonds: Bond Maturity (years) Yield to Maturity A 1 3.5% B 2 4% 3 3.5% D 4

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3. Consider the following $1,000 par value zero-coupon bonds: Bond Maturity (years) Yield to Maturity A 1 3.5% B 2 4% 3 3.5% D 4 3.8% According to the expectations hypothesis, what is the expected 1-year interest rate 2 years from now

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