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Assume the following term structure of spot rates: 1 = 1.55%, 2 = 1.82%, 3 = 2.03%. Use the return-maturity Expectations Theory to calculate the

Assume the following term structure of spot rates: 1 = 1.55%, 2 = 1.82%, 3 = 2.03%. Use the return-maturity Expectations Theory to calculate the implied expected one-period spot rates E( ) (). Also, calculate the implied expected two-period spot rate ( ).

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