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Suppose your friend is deciding between investing in two consecutive 1-year Treasury bonds and a 2 -year Treasury bond. The yield on a 1 -year

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Suppose your friend is deciding between investing in two consecutive 1-year Treasury bonds and a 2 -year Treasury bond. The yield on a 1 -year bond is 5.1096 today and the yied on a 2 -year bond is 6.30%. You telf your frend that if the expected interest rate on a 1 -year bond 1 year from now is then he should be indifferent between the two options

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