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Suppose the interest rate on a one year T bond is 2.45% and that on a two year T bond is 2.85%. Assuming the pure

Suppose the interest rate on a one year T bond is 2.45% and that on a two year T bond is 2.85%. Assuming the pure expectations theory is correct what is the market forecast for one year rates one year from now? image text in transcribed
Question 17 4 pts Suppose the interest rate on a 1-year T-bond is 2.45% and that on a 2-year T-bond is 285%. Assuming the pure expectations theory correct, what is the market's forecast for 1-year rates 1 year from now? Round the intermediate calculations to 4 decimal places and final answer to 2 decimal places 2.95% 3.15% 0 3.25% 0 3.90%

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