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The expected path of one - year interest rates over the next five years is 3 percent, 4 percent, 6 percent, 7 percent, and 5
The expected path of oneyear interest rates over the next five years is percent, percent, percent, percent, and percent, respectively. Given that the expectations theory is the correct theory of the term structure:a Draw the yield curve for the year period. ptsb If the investors prefer shorterterm bond to longerterm bond, what happen to the shape of the yield curve? pts
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