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A one-year Treasury bill offers a 7% yield to maturity. A two-year Treasury bill offers a 7.5% yield to maturity. What is the expected 2
A one-year Treasury bill offers a 7% yield to maturity. A two-year Treasury bill offers a 7.5% yield to maturity. What is the expected 2 year forward rate if the expectation hypothesis holds? Enter your answer as a percentage. Do not include the percentage sign in your answer.
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