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Today is time t. You are given the following expected interest rates. i i = 3 %, i 3,1 + 1 = 4.5 %,
Today is time t. You are given the following expected interest rates. i i = 3 %, i 3,1 + 1 = 4.5 %, 1 2,1 +4=4% According to the expectation theory, what is the interest rate (in %) of a four-year bond today, i ? Round your answer to at least 2 decimal places. 4,1
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