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QUESTION 13 Suppose that the current one-year zero-coupon rate is 3.5% and that the expected one-year rate next year is 5%. If the current 2-year

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QUESTION 13 Suppose that the current one-year zero-coupon rate is 3.5% and that the expected one-year rate next year is 5%. If the current 2-year spot rate is 4.5%, what is the implied term premium for the two-year zero-coupon bond? Use the approximation from class

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