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Eleanor would like to invest a certain amount of money for three years and considers investing in a one - year bond that pays 6
Eleanor would like to invest a certain amount of money for three years and considers investing in a oneyear bond that pays percent. Eleanor would then like to buy a second oneyear bond that is expected to pay the oneyear forward rate one year from now, and finally a third oneyear bond that is expected to pay the oneyear forward rate two years from now. Hint: Assume that year bonds and year bonds both yield
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