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I notice that 1-year interest rates are 1 percent below 2-year rates.We should borrow short-term, lend money long-term, netting a 1% gain in this trade.
"I notice that 1-year interest rates are 1 percent below 2-year rates.We should borrow short-term, lend money long-term, netting a 1% gain in this trade."
Is this statement True or false assuming a world of efficient markets?
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