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If you observe todays yield on one-year T-bills is 5.4%, and on two-year T-bonds is 5.0%, what can you conclude about the market expectation on
If you observe todays yield on one-year T-bills is 5.4%, and on two-year T-bonds is 5.0%, what can you conclude about the market expectation on the trend of interest rate next year?
Group of answer choices
The rate is expected to rise.
The rate is expected to decline.
The rate is expected to remain about the same as this year.
Cannot conclude with given information.
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