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Suppose the term structure of interest rates has these spot interest rates: r1=5.7%.r2= 5.5%,r3=5.3%,r4=5.1%, and r5=6.7%. What will be the 1-year spot interest rate in

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Suppose the term structure of interest rates has these spot interest rates: r1=5.7%.r2= 5.5%,r3=5.3%,r4=5.1%, and r5=6.7%. What will be the 1-year spot interest rate in four years if the expectations theory of term structure is correct? Multiple Choice - 6.3% 13.3% - 5.5% - 7.8% 14.2%

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