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Use the term structure table below to answer the question. Based on the expectations hypothesis of the term structure, what is the expected two-year interest
Use the term structure table below to answer the question. Based on the expectations hypothesis of the term structure, what is the expected two-year interest rate one year from now?
Term | Today |
1 year | 3.00% |
2 years | 3.25% |
3 years | 3.50% |
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