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Analysts predict that short-term interest rates over the next 4 years will be as follows: 5.5%, 4%, 1.1%, and 10%, respectively.According to expectations theory, the
Analysts predict that short-term interest rates over the next 4 years will be as follows: 5.5%, 4%, 1.1%, and 10%, respectively.According to expectations theory, the yield on a discount bond with a three year maturity will be ____ and yield on bond with a four year maturity will be ____.
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3.05%; 5.55%
3.05%; 5.15%
3.53%; 5.55%
3.53%; 5.15%
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