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According to the Expectations Hypothesis, what is the expected rate of interest on a 2-year zero-coupon bond implied by the following term structure: A 1-year
According to the Expectations Hypothesis, what is the expected rate of interest on a 2-year zero-coupon bond implied by the following term structure: A 1-year zero-coupon bond has a yield to maturity of 2% and a one year bond in the second year has a yield to maturity of 4%.
6.00%
6.50%
3.00%
5.16%
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