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If (holding all else equal) the interest rate that investors expect on one-year instruments next year suddenly increases to 5.00%, investors will become two-year bonds

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If (holding all else equal) the interest rate that investors expect on one-year instruments next year suddenly increases to 5.00%, investors will become two-year bonds today. This will cause the yield on two-year bonds today to If (holding all else equal) the interest rate that investors expect on one-year instruments next year suddenly increases to 5.00%, investors will become two-year bonds today. This will cause the yield on two-year bonds today to

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