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8 Assume the current interest rate on a one-year Treasury bond (11)is 128 percent, the current rate on a two-year Treasury bond (12) is 1.44

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8 Assume the current interest rate on a one-year Treasury bond (11)is 128 percent, the current rate on a two-year Treasury bond (12) is 1.44 percent, and the current rate on a three-year Treasury bond (1 *) is 155 percent. If the unbiased expectations theory of the term structure of interest rates is correct, what is the one-year interest rate expected on T-bills during year 3 (31) or 3)? (Do not round Intermediate calculations. Round your answer to 2 decimal places, (e.g. 32.16) 1 points Interest rate expected during year 3 02:26:42 eBook Print References

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