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Suppose the yield on a one-year bond with no credit risk is 3.2% and the yield on a 3-year bond with no credit risk is
Suppose the yield on a one-year bond with no credit risk is 3.2% and the yield on a 3-year bond with no credit risk is 3.5%.
What is expected to be the one-year interest rate two years from now according to the Expectations Theory?
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