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Suppose the interest rate on a 1-year T-bond is 440% and that on a 2-year T-bond is 6 .ross. Assuming the pure expectations theory is

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Suppose the interest rate on a 1-year T-bond is 440% and that on a 2-year T-bond is 6 .ross. Assuming the pure expectations theory is correct, what is the market's forecast for 1 -year rates 1 year from now? Do not round your intermediate calculations. Round your final answer to 2 decimal places. a. 5.25% b. 8,17% c. 4.95% d. 6.05% e. 7.83% Suppose the interest rate on a 1-year T-bond is 440% and that on a 2-year T-bond is 6 .ross. Assuming the pure expectations theory is correct, what is the market's forecast for 1 -year rates 1 year from now? Do not round your intermediate calculations. Round your final answer to 2 decimal places. a. 5.25% b. 8,17% c. 4.95% d. 6.05% e. 7.83%

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