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8. A two-year bond offers a yield of 6% and a three year bond offers a yield of 7.5%. Under the expectations theory what should

8. A two-year bond offers a yield of 6% and a three year bond offers a yield of 7.5%. Under the expectations theory what should be the yield on a one year bond in two years? A) 3.06% B) 12.49% C) 5.95% D) 10.56% 1

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