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Consider following $1,000 par value zero-coupon bonds. According to the expectations hypothesis, what is the expected 1-year interest rate 2 years from now? Bond Maturity
Consider following $1,000 par value zero-coupon bonds. According to the expectations hypothesis, what is the expected 1-year interest rate 2 years from now?
Bond | Maturity | Yield to Maturity | |
A | 1 year | 5.00% | |
B | 2 years | 6.10% | |
C | 3 years | 6.40% |
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