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suppose the interest rate on a 2 year t-bond is 6.0% and that on a 3 year t-bond is 6.2 % and that on a
suppose the interest rate on a 2 year t-bond is 6.0% and that on a 3 year t-bond is 6.2 % and that on a 4 year t-bond is 6.4% assuming the purse expectations theory is correct, what is the market's forecast for 2 year rates, 2 year from now (forward rate r2,4)?
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