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Currently, the term structure is as follows: 1-year zero-couponbonds yield 7%; 2-year zero-coupon bonds yield 8%; 3-year andlonger-maturity zero-coupon bonds all yield 9%. You are

Currently, the term structure is as follows: 1-year zero-couponbonds yield 7%; 2-year zero-coupon bonds yield 8%; 3-year andlonger-maturity zero-coupon bonds all yield 9%. You are choosingbetween 1 2 answers

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