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The bank forecasts the following one-year interest rates one, two, and three years in the future: 4.25%, 4.80%, and 7.00%. The current one-year interest rate

The bank forecasts the following one-year interest rates one, two, and three years in the future: 4.25%, 4.80%, and 7.00%. The current one-year interest rate is 4.20%. Estimate the annual four-year interest rate using the expectations theory. A. 5.06% B. 5.75% C. 6.78% D. 21.81%

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