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Question 2 [5 marks] ' E If expected returns from a one year bond [51] held for two years is 5! =1 + it +

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Question 2 [5 marks] ' E If expected returns from a one year bond [51] held for two years is 5! =1 + it + if and that of a two year bond [52) is '51 :1 + 21-1\" showr that the returns for two years are consistent Twith the Expectations Theory

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