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Question 20 1 Point If the current one-year interest rate is 10% and, currently investors expect that next year, the one-year interest rate will be

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Question 20 1 Point If the current one-year interest rate is 10% and, currently investors expect that next year, the one-year interest rate will be 12%, what should the two-year spot rate be, if the expectations theory is correct? A 13.00% B) 11.00% C C) 9.00% D) None of the above E 7.00%

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