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(a) Denote the current interest rate for 1year and 2year Tbls by i1; and 1'. Write down the expression for the 1year interest rate expected

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(a) Denote the current interest rate for 1year and 2year Tbls by i1; and 1'\". Write down the expression for the 1year interest rate expected for next year, denoted by f; and the expression for the 10year ,IE'+'l ' interest rate expected 10 years from now, {in J +10. (b) Using the US. yield curve, compute the 1year interest rate that is expected for die year beginning on April 20, 2019, and the 10year interest rate that is expected for the 10 years starting on April 20, 2028. (c) Repeat the calculations in (b) for Euro Area government bonds. (d) Discuss the differences between the yield curves in the U5. and in the Euro Area, in panicular the speed at which 1year mterest rates are expected to rise. Read this article and provide at least one explanalion for the current negative nominal interest rates in the Euro Area

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