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Suppose we observe the annual yields of treasury securities for two years and three years to be 5% and 6%, respectively. What is the implied
Suppose we observe the annual yields of treasury securities for two years and three years to be 5% and 6%, respectively. What is the implied one-year forward rate, two years from now, if the expectations hypothesis holds?
- 5.5%
- 7.0%
- 8.0%
- 9.0%
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