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Today, interest rates on 1 - year T - bonds yield 1 . 2 % , interest rates on 2 - year T - bonds
Today, interest rates on year Tbonds yield interest rates on year Tbonds yield and interest rates on year Tbonds yield If the pure expectations theory is correct, what is the yield on year Tbonds one year from now? Be sure to use a geometric average in your calculations. Do not round intermediate calculations. Round your answer to four decimal places.
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