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today. Both options should yield the same result if the market is in equilibrium; otherwise, investors would buy and sell securities until the market was
today. Both options should yield the same result if the market is in equilibrium; otherwise, investors would buy and sell securities until the market was in equilibrium. Quantitative Problem: Today, interest rates on 1-year T-bonds yield 1.7\%, interest rates on 2-year T-bonds yield 2\%, and interest rates on 3-year T-bonds yield 3.5\%. % % %
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