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5. The current one year interest rate is 3.00% on a T-bill. The current two year interest 5.00% on the T-note. What is the market

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5. The current one year interest rate is 3.00% on a T-bill. The current two year interest 5.00% on the T-note. What is the market predicting about the interest rate on a one year bond in year 2(one year from now) solely based on the expectations theory? A. 5.75% B. 4.00% D. 7.00%

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