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Suppose the yields on government bonds are as follows: 1-year = .02; 2-year = .025; 3-year = .035. According to the expectations theory, what is
Suppose the yields on government bonds are as follows: 1-year = .02; 2-year = .025; 3-year = .035. According to the expectations theory, what is the implied 2-year forward yield on a 1-year government bond?
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