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Today is time t. You are given the following expected interest rates. 1 = 3%, 13, 1+1=4 =3% 12,1+4=4% According to the expectation theory,
Today is time t. You are given the following expected interest rates. 1 = 3%, 13, 1+1=4 =3% 12,1+4=4% According to the expectation theory, what is the expected interest rate (in %) of a five-year bond a year from today, S, +1? Round your answer to at least 2 decimal places. =4.5%, i
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Macroeconomics
Authors: Robert J Gordon
12th edition
138014914, 978-0138014919
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