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A plot of the yields on bonds with different terms to maturity but the same risk, liquidity, and tax considerations is known as A. an

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A plot of the yields on bonds with different terms to maturity but the same risk, liquidity, and tax considerations is known as A. an interest-rate curve. B. a term-structure curve. c. a yield curve. D. a risk-structure curve. Suppose people expect the interest rate on one-year bonds for each of the next four years to be 3%, 5%, 5%, 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)

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