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The following pattern for one - year Treasury bills is expected over the next four years: Year 1 : 4 . 5 % Year 2
The following pattern for oneyear Treasury bills is expected over the next four years:
Year :
Year :
Year :
Year :
a What return would be necessary to induce an investor to buy a
i twoyear security
ii threeyear security
iii. fouryear security
b What is the shape of the yield curve?
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