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4. The table below shows the current yields on various maturity zero coupon bonds. Suppose the Expectations Hypothesis holds. What must be investor's expectation of
4. The table below shows the current yields on various maturity zero coupon bonds. Suppose the Expectations Hypothesis holds. What must be investor's expectation of the one-year interest rate two years from now? Maturity Yield 1% 2 3 3% 4 4% 1 2% (a) 3.01 % (b) 5.03 % (c) 7.06 %
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