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If the unbiased expectations theory is valid for the term structure of interest rates, and if the current yield levels for 1-year period, 2-year period,
If the unbiased expectations theory is valid for the term structure of interest rates, and if the current yield levels for 1-year period, 2-year period, and 10-year period bonds are 4%, 6%, and 9% respectively, please explain how the market predicts the economic activity for the next few years.
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