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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

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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 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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