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QUESTION 17 Lets assume that the expectation theory is correct (investor does not care about maturity) and the expectations for 1year bonds are -2% in

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QUESTION 17 Lets assume that the expectation theory is correct (investor does not care about maturity) and the expectations for 1year bonds are -2% in 2017 4% in 2018 6% in 2019 The required yield to maturity for a 1-year bond is The required yield to maturity for a 2-year bond is The required yield to maturity for a 3-year bond is The resulting yield curve is sloping

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