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Buy bond at T=0 for T=3 and sell at T=1 Analysis of term structure of risk-free interest rates. Year 1 yield 1%, Year 2 yield

image text in transcribed Buy bond at T=0 for T=3 and sell at T=1
Analysis of term structure of risk-free interest rates. Year 1 yield 1%, Year 2 yield 2%, Year 3 yield 3%, Year 4 yield is 3.5% Assume you buy 3-year bond above and you sell it after one year. What is the expected return on this investment

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