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Assuming there is no liquidity premium. If the interest rate on a 2-year bond is 1.5% and a 1-year bond has a rate of 2%.
Assuming there is no liquidity premium. If the interest rate on a 2-year bond is 1.5% and a 1-year bond has a rate of 2%. What are expectations for interest rates a year from now? Please show steps (not using Excel).
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