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Suppose 2-year T-bonds yield 5.80%, and a 5-year T-bonds yield 6.5%. Assuming that the pure expectations theory is correct, a person who invests in the

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Suppose 2-year T-bonds yield 5.80%, and a 5-year T-bonds yield 6.5%. Assuming that the pure expectations theory is correct, a person who invests in the 2- vear T-bonds must earn what rate of interest to be as well off as if she had invested in the 5-year T-bonds

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