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Suppose the yields on one-year government bonds are as follows: spot = .04; 1-year forward = .045; 2-year forward = .06. According to the expectations

Suppose the yields on one-year government bonds are as follows: spot = .04; 1-year forward = .045; 2-year forward = .06. According to the expectations theory, what is the approximate (spot) yield on a 3-year government bond? a. 4.80% b. 4.81% c. 4.82% d. 4.83% e. 4.84%

Please show formula in excel

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