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Assume the following series of one-year interest rates over the next five years: 5%, 7%, 7%, 7%, 7% Assuming that the expectations theory is the

Assume the following series of one-year interest rates over the next five years: 5%, 7%, 7%, 7%, 7% Assuming that the expectations theory is the correct theory of the term structure, calculate the interest rate for a 3-year bond. Then calculate for a 5-year bond.

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