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Suppose that the interest rate on one-year bonds is currently 5.5 percent and is expected to be 5 percent in one year and 7 percent

Suppose that the interest rate on one-year bonds is currently 5.5 percent and is expected to be 5 percent in one year and 7 percent in two years. Using the Expectations Hypothesis, compute the yield curve for the next three years. Round you answers to the nearest hundredth (2 decimal places).

Yield for one-year bond

Yield for two-year bond

Yield for three-year bond

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