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Suppose that your preferred habitat is in short-term bonds with a liquidity premium on 2-year bonds of 0.25%, if the interest rate for this year
Suppose that your preferred habitat is in short-term bonds with a liquidity premium on 2-year bonds of 0.25%, if the interest rate for this year on a 1-year bond is 5% and today's interest rate on a 2-year bond is 5.75%, what is your next year's expected interest rate on a 1-year bond? O 6.3% O None of the given answers is correct O 5.0% O 8.0% O 9.0%
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