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The bank forecasts the following one-year interest rates one, two, and three years in the future: 4.00%, 4.00%, and 5.00%. The current one-year interest rate

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The bank forecasts the following one-year interest rates one, two, and three years in the future: 4.00%, 4.00%, and 5.00%. The current one-year interest rate is 3.20%. Estimate the annual four-year interest rate using the Expectations theory. A 4.0 16.2000 OD 12.2000 Reset Selection Question 10 of 34 3 Points A municipal bond yields 5.5%. You are in the 20% tax bracket. If you can eam 7% on a corporate bond with similar risk characteristics, which bond should you prefer? On Municipal bond

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