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The Wall Street Journal reports that the current rate on 10-year Treasury bonds is 2.35 percent and the rate on 20-year Treasury bonds is 4.60
The Wall Street Journal reports that the current rate on 10-year Treasury bonds is 2.35 percent and the rate on 20-year Treasury bonds is 4.60 percent. Assume that the maturity risk premium is zero. Calculate the expected rate on a 10-year Treasury bond purchased ten years from today, E(10r10). (Do not round intermediate calculations. Round your answer to 2 decimal places.)
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