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Suppose the path of expected 1-yr interest rates over the next three years is 2%, 4%, 4.5%. If the current two-year interest rate is 4%,

Suppose the path of expected 1-yr interest rates over the next three years is 2%, 4%, 4.5%. If the current two-year interest rate is 4%, what is the implied term premium on the two-year bond?

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