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According to expectations theory if the 1 year interest is 2.5% this year and expected to be 3.5% next year, the 2 year interest rate
According to expectations theory if the 1 year interest is 2.5% this year and expected to be 3.5% next year, the 2 year interest rate should be approximately
a) 3%
b) 6%
c) 3.5%
d) 8.75%
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