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The market expects the 1-year spot rate (starting today) to be 5.2% and next year's 1-year spot rate to be 10.5%. According to the expectations
The market expects the 1-year spot rate (starting today) to be 5.2% and next year's 1-year spot rate to be 10.5%. According to the expectations theory, what is the 2-year spot rate (starting today)? show your work
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