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7.0%. Assuming the pure expectations theory is correct, what is the Suppose the interest rate on a 2-yeal T-bond is 6.0% and that on a

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7.0%. Assuming the pure expectations theory is correct, what is the Suppose the interest rate on a 2-yeal T-bond is 6.0% and that on a 3-year market's forecast for 1-year rates 2 year from now? 7.36% 7.75% 8.16% 9.0396 10.039

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