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Right now, the yield to maturity on 1-year bonds is 2%. Suppose that you expect the short-term (1- year) rate to remain 2 for 3

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Right now, the yield to maturity on 1-year bonds is 2%. Suppose that you expect the short-term (1- year) rate to remain 2 for 3 years. After that the short-term rate will remain constant at 5% for the next 20 years. Compute the YTM on a 8-year bond. APPROXIMATELY

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