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Suppose 2-year Treasury bonds yield 3.9%, while 1-year bondsyield 3.2%. r* is 1%, and the maturity risk premium is zero.Using the expectations theory, what is

Suppose 2-year Treasury bonds yield 3.9%, while 1-year bondsyield 3.2%. r* is 1%, and the maturity risk premium is zero.Using the expectations theory, what is the yield on a 1-yearbond, 1 year from 2 answers

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