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Recall the expectations theory asserts that the current implied forward rates for 1 year ahead---that is, the forward rates from year 1 to future dates---are

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Recall the expectations theory asserts that the current implied forward rates for 1 year ahead---that is, the forward rates from year 1 to future dates---are good estimates of next year's spot rates. Given the current yearly spot rate curve S = (5.3%, 5.6%, 5.9%, 6.2%, 6.5%, 6.8%) Find a good estimate for the spot rate curve for next year, assuming the expectations theory is true. O (5.90%, 6.20%, 6.50%, 6.80%, 7.10%) O (5.30%, 5.60%, 5.80%, 6.00%, 6.10%) O (4.30%, , 4.60%, 4.80%, 5.00%, 5.10%) O (5.00%, 5.30%, ,5.60%, 5.80%, 6.00%) O (6.60%, 6.90%, 7.07%, 7.25%, 7.32%) (5.60%, 5.90%, 6.07%, 6.25%, 6.32%)

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