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A 5-year Treasury bond currently offers a 7% rate of retum. A 6-year Treasury bond offers a 39% rate of retum. The inflation rate in

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A 5-year Treasury bond currently offers a 7% rate of retum. A 6-year Treasury bond offers a 39% rate of retum. The inflation rate in fifth year is 1%. Under the expectations theory, what rate of retum do investors expect a four year Treasury bond to pay during the firh year? Please write your final answer in the box below. Please write the formula, steps for calculation in the space provided in the next questien

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