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CS ONLINE LINKS TECHNICAL LINKS Assume that the current one-year rate is 2% and investors tapect the following future rates: One-year rate for year 2:

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CS ONLINE LINKS TECHNICAL LINKS Assume that the current one-year rate is 2% and investors tapect the following future rates: One-year rate for year 2: 6% One-year rate for year 3: 7% One-year rate for year 4: 8% What is the interest rate for a 4-year debt security based on the expectations hypothesis of the term structure of interest rates? Select one to a. 5.21% b. 5.73% C. 5% od 6.22%

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