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Suppose that the interest rate on one-year bonds is currently 2 percent and is expected to be 4 percent in one year and 5 percent

Suppose that the interest rate on one-year bonds is currently 2 percent and is expected to be 4 percent in one year and 5 percent in two years. Using the Expectations Hypothesis, compute the yield curve for the next three years. Yield for one-year bond =? Yield for two-year bond =? Yield for three-year bond = ?

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