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Analysts at New Lenox Securities have reported that the annual interest rate beint paid on 3 year bonds sued by the US federal government is

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Analysts at New Lenox Securities have reported that the annual interest rate beint paid on 3 year bonds sued by the US federal government is in the annual rate being paid on 2 year federal government bonds is 2.1 and the rate being paid on your federal government bonds 2. Assume that liquidity and maturity is premiums are zero as in the examples we worked. According to the Expectations Theory, what amul interest rate does the market expect the federal povernment to pay on a year bond originating in year 3? Un subsequent question 12 you will be asked to compute a different but related mbled forward interest." A1.0 C.165 oooow Analysts at New Lenox Securities have reported that the annual interest rate beint paid on 3 year bonds sued by the US federal government is in the annual rate being paid on 2 year federal government bonds is 2.1 and the rate being paid on your federal government bonds 2. Assume that liquidity and maturity is premiums are zero as in the examples we worked. According to the Expectations Theory, what amul interest rate does the market expect the federal povernment to pay on a year bond originating in year 3? Un subsequent question 12 you will be asked to compute a different but related mbled forward interest." A1.0 C.165 oooow

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