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Suppose that the interest rate on a one-year bond is currently 3% and the market believes that the rate on a one-year bond one year

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Suppose that the interest rate on a one-year bond is currently 3% and the market believes that the rate on a one-year bond one year from now will be 5% If you follow the pure expectations theory of interest rates, then you would expect to see a(n) yield curve Select one: O a. upward-sloping Ob downward-sloping c. horizontal d. vertical

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