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Please show how you solved and use 3 decimals. Assume that the assumptions of the Expectations Hypothesis are true and that today's one-year risk-free rate
Please show how you solved and use 3 decimals.
Assume that the assumptions of the Expectations Hypothesis are true and that today's one-year risk-free rate is 7%. Moreover, investors expect that the one year rate one year from now will be 3% and the one year rate two years from now will be 6%. Given this information, what should be today's three-year risk-free rate? Be precise, and round your percentage (%) to three decimals (001) on your calculator Step by Step Solution
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