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Suppose the interest rate on a 1 - year T - bond is 4 . 9 0 % and that on a 2 - year

Suppose the interest rate on a 1-year T-bond is 4.90% and that on a 2-year T-bond is 5.80%. Assume that the pure expectations theory is NOT valid, and the MRP is zero for a 1-year T-bond but 0.40% for a 2-year bond. What is the yield on a 1-year T-bond expected to be one year from now? Do not round your intermediate calculations. Round your final answer to 2 decimal places.
a.5.15%
b.6.71%
c.5.44%
d.5.90%
e.5.39%
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