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Assume that the expectations theory holds, and that liquidity and maturity risk premiums are zero. If the annual rate of interest on a 5-year Treasury

Assume that the expectations theory holds, and that liquidity and maturity risk premiums are zero. If the annual rate of interest on a 5-year Treasury bond is 2.0 percent and the rate on a 3-year Treasury bond is 1.5 percent, what rate of interest should you expect on a 2-year Treasury bond, three years from now?

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