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The yield on a one-year security is 7% while the yield on a two-year security is 10%. According to the expectations theory, the implied one-year

The yield on a one-year security is 7% while the yield on a two-year security is 10%. According to the expectations theory, the implied one-year rate exactly one year from today is closest to

Question 24 options:

7%

10%.

12%.

13%.

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