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Assume that the interest rate on a 1-year T-bond is currently 8% and the rate on a 2- year bond is 9.5%. If the maturity

Assume that the interest rate on a 1-year T-bond is currently 8% and the rate on a 2- year bond is 9.5%. If the maturity risk premium is zero, what is a reasonable forecast of the rate on a 1-year bond, 1 year from now?

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