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5) Given the term structure below Term (years) Today's Rate 1 3.00% 2 3.12% 3 3.23% Based on the expectations hypothesis, what does the market
5) Given the term structure below
Term (years) | Today's Rate |
1 | 3.00% |
2 | 3.12% |
3 | 3.23% |
Based on the expectations hypothesis, what does the market expect the 1 year rate in 1 year to be?
3.35% |
3.40% |
3.45% |
3.08% |
3.24% |
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