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regarding future inflation, risk, and short - term interest rates. The theory states that the shape of the yield curve depends on investors' expectations about

regarding future inflation, risk, and short-term interest rates. The theory states that the shape of the yield curve depends on investors' expectations about future would buy and sell securities until the market was in equilibrium.
Quantitative Problem:
Today, interest rates on 1-year T-bonds yield 1.3%, interest rates on 2-year T-bonds yield 2.5%, and interest rates on 3-year T-bonds yield 3.8%. calculations. Round your answer to four decimal places.
% calculations. Round your answer to four decimal places.
% calculations. Round your answer to four decimal places.
%
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