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Assume that the pure expectations hypothesis of the term structure is correct. If market expectations are accurate, what will the pure yield curve (that is,

Assume that the pure expectations hypothesis of the term structure is correct. If market expectations are accurate, what will the pure yield curve (that is, the yields to maturity on one- and two-year zero-coupon bonds) be next year?

	There will be a shift upwards in next year's curve.
	There will be a shift downwards in next year's curve.
	There will be no change in next year's curve.

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