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Please show work and how to calculate it using financial cal QUESTION 6 Suppose the interest rate on a 1-year T-bond is 2.66%, that on
Please show work and how to calculate it using financial cal
QUESTION 6
Suppose the interest rate on a 1-year T-bond is 2.66%, that on a 2-year T-bond is 2.87%, that on a 3-year T-bond is 3.15%, and that on a 4-year T-bond is 3.36%. Assume that the pure expectations theory is valid, what is the yield on a 2-year T-bond expected to be two years from now? Round the intermediate calculations to 6 decimal places and final answer to 4 decimal places
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