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Suppose the return from a six-year bond is currently below the expected average annual return from a series of one-year bonds over six years.Using both

Suppose the return from a six-year bond is currently below the expected average annual return from a series of one-year bonds over six years.Using both words and equations, explain the process by which arbitrage will adjust the term structure.Under which theory of the term structure would this inequality persist?Why?

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