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An investor is indifferent between buying a 2 - year security issued today and a one - year security today followed by buying a one
An investor is indifferent between buying a year security issued today and a oneyear
security today followed by buying a oneyear security to be issued at the beginning of the
next year. The oneyear security issued today has a yield of ; the investor expects that the
oneyear security issued one year from today will have a yield of That means that the
year security has a yield of:
a
b
c
d
e None of the Above
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