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Suppose the interest rate on a 1 - year T - bond is 5 . 1 0 % and that on a 2 - year
Suppose the interest rate on a year Tbond is and that on a year Tbond is Assume that the pure expectations theory is NOT valid, and the MRP is zero for a year Tbond but for a year bond. What is the yield on a year Tbond expected to be one year from now? Do not round your intermediate calculations. Round your final answer to decimal places.
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