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A plot of the yelds on bonds with rent terms to matnly the same nisk Squidity and tax considerations is known as Interest Rate 1

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A plot of the yelds on bonds with rent terms to matnly the same nisk Squidity and tax considerations is known as Interest Rate 1 1 A. an intereste curve O B ansk structure curve Cayed cu O atorm-structure curve 5 -- - -r- --- - ------ Suppose people expect the interest rate on one year bonds for each of the need four years to be 3% 4%, 6% and 6% if the expectations theory of the term structure of interest rates is correct, then the implied interest rate on bonds with a maturity of four years is Round your response to the nearest whole number Refer to the figure on your ngt Suppose the expected interest rates on one year bonds for each of the next four years are 4%,5%, 6%, and 7%, respectively --- - 1 2 3 4 5 Term to Maturity 1.) Use the line drawing tool to plot the yield curve generated 2) Use the point drawing food to locate the interest rates on the next four years Carefully follow the instructions above, and only drow the required objects

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