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Suppose the interest rate on a 1-year T-bond is 1.50% and that on a 2-year T-bond is 3.00%. Assume that the pure expectations theory is
Suppose the interest rate on a 1-year T-bond is 1.50% and that on a 2-year T-bond is 3.00%. Assume that the pure expectations theory is NOT valid, and the MRP is zero for a 1-year T-bond but 0.45% f...
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International Money and Finance
Authors: Michael Melvin, Stefan C. Norrbin
8th edition
978-8131234136, 123852471, 978-0123852472
