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One-year treasuries yield 5%- and two-year Treasuries yield 5.50%. You have a two-year time horizon. You are considering a one-year roll of Treasuries. What would
One-year treasuries yield 5%- and two-year Treasuries yield 5.50%. You have a two-year time horizon. You are considering a one-year roll of Treasuries. What would you have to get in the second year to beat just holding the two-year Treasury? (Carry your answer out three decimal places).
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