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Suppose the interest rate on a 1 - year T - bond is 5 . 0 0 % and that on a 2 - year

Suppose the interest rate on a

1 -

year T

-

bond is

5.00 %

and that on a

2 -

year T

-

bond is

5.90 % .

What is the yield on a

1 -

year T

-

bond expected to be one year from now?

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