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Suppose the federal fund rate is currently 2% and the term premium between the federal funds rate and the 1-year rate is equal to 1

Suppose the federal fund rate is currently 2% and the term premium between the federal funds rate and the 1-year rate is equal to 1 percent.

Also, suppose that it is expected that the FOMC will increase the federal funds rate 3 months from now by 50 basic points. Everything else held constant, what is the value of the 1-year interest rate today?

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