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Consider the yield curve with zero-coupon bonds at a face-value at 100: Maturity 1 2 3 Yield 4% 5% 6% 1. Calculate the expected

Consider the yield curve with zero-coupon bonds at a face-value at 100: Maturity 1 2 3 Yield 4% 5% 6% 1. Calculate the expected yield curve one year hence. 2. Which of the bonds would you prefer as a mean-variance investor? Does the investment horizon matter?

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