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The current one-year interest rate is 1.50%; the expected yield on a one-year bond next year is 2%, the expected one-year interest rate in two
The current one-year interest rate is 1.50%; the expected yield on a one-year bond next year is 2%, the expected one-year interest rate in two years is 3.5%. Given these market-related facts, what is the required interest rate on a current three-year bond?
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