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Question 6 1 pts The real risk-free rate of interest is 2 percent. Inflation is expected to be 3 percent this coming year, jump to

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Question 6 1 pts The real risk-free rate of interest is 2 percent. Inflation is expected to be 3 percent this coming year, jump to 5 percent next year, and increase to 6 percent the year after (Year 3). According to the expectations theory, what should be the interest rate on 1-year, risk-free securities today? 4.60% O 4.40% O 5.00% 4.80% O 5.10% Question 6 1 pts The real risk-free rate of interest is 2 percent. Inflation is expected to be 3 percent this coming year, jump to 5 percent next year, and increase to 6 percent the year after (Year 3). According to the expectations theory, what should be the interest rate on 1-year, risk-free securities today? 4.60% O 4.40% O 5.00% 4.80% O 5.10%

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