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Attached file shows the 1-year interest rates that economists and professional analysts believe will exist in the financial markets during the next three years. Based

Attached file shows the 1-year interest rates that economists and professional analysts believe will exist in the financial markets during the next three years. Based on this information, what should the interest rate be for a 3-year bond that is trading in the financial markets today?

Year Rate

2013 3.0%

2014 3.2

2015 4.0

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