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Assume you discover a yield curve where the rate on 7-year bonds is 10.34% and the yield on 3-year bonds is 4.24%. Assuming pure expectations
Assume you discover a yield curve where the rate on 7-year bonds is 10.34% and the yield on 3-year bonds is 4.24%. Assuming pure expectations theory, what is your forecast for the yield of 4-year bonds 3 years from today?
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