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Please explain how it is 4% Suppose 1 year and 2 year bond yields currently are 2% and 3%. According to expectations hypothesis, what's the

image text in transcribed Please explain how it is 4%

Suppose 1 year and 2 year bond yields currently are 2% and 3%. According to expectations hypothesis, what's the expected yield on 1 year bond year from now? A) 1% B) 1.5% C) 2.5 % D) 4%

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