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The 5-year T-bond rate is 6.05%. It is expected that the 2-year rate after 3 years from today is 4.85%. Under the pure expectation theory,
The 5-year T-bond rate is 6.05%. It is expected that the 2-year rate after 3 years from today is 4.85%. Under the pure expectation theory, what is the equilibrium rate of return on a 3-year T-bond?
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International Financial Management
Authors: Cheol Eun, Bruce Resnick
4th Edition
0072996862, 9780072996869
