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Suppose today is January 2, 2021 and economists and investment analysts forecast the following one-year (12-month) interest rates for the next four years: Year 2021

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Suppose today is January 2, 2021 and economists and investment analysts forecast the following one-year (12-month) interest rates for the next four years: Year 2021 2022 2023 2024 1-Year Rate 0.4% 0.8 1.5 1.3 Based on the expectations theory, what should be the yield on a 2-year bond? O 1.0% 0.8% O 0.6% O 0.9% O 1.5%

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