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The current annualized yield on a 1-year STRIPS is 2.4% and the annualized yield on a 2-year STRIPS is 2.6%. According to the expectations theory

The current annualized yield on a 1-year STRIPS is 2.4% and the annualized yield on a 2-year STRIPS is 2.6%. According to the expectations theory of interest rates, what will be the annualized yield on a 1-year STRIPS one year from now? What would you expect to pay for this STRIPS with a $1,000 face value?

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