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Bloomberg reports interest rates of 2.25%, 2.60%, 2.98%, and 3.25% for 3-year, 4-year, 5-year and 6-year T-notes, respectively. According to the UET of the term
Bloomberg reports interest rates of 2.25%, 2.60%, 2.98%, and 3.25% for 3-year, 4-year, 5-year and 6-year T-notes, respectively. According to the UET of the term structure of interest rates, what are the expected 1-year rates starting 3 years from now, 4 years from now and 5 years from now?
Please draw a timeline and answer the problem. Thank You.
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