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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
Suppose your friend is deciding between investing in two consecutive year Treasury bonds and a year Treasury bond. The yield on a year bond is today and the yield on a year bond is You tell your friend that if the expected interest rate on a year bond year from now is then she should be indifferent between the two options.
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