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II. Suppose the interest rate on a 3-year government bond is 4.50% and that on a 6 -year government bond is 5,90%. What is the

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II. Suppose the interest rate on a 3-year government bond is 4.50% and that on a 6 -year government bond is 5,90%. What is the market's forecast for 3 -year rates 3 years from now, assuming the pure expectations theory is correct? ( 20 marks, do 2 of 3 )

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