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What is the forward rate of interest and expectation hypothesis? The answer is not 10.62% The yield to maturity on oneyear zerocoupon bonds is 8.3%.

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What is the forward rate of interest and expectation hypothesis? The answer is not 10.62%

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The yield to maturity on oneyear zerocoupon bonds is 8.3%. The yield to maturity on twoyear zero-coupon bonds is 9.3%. a. What is the forward rate of interest for the second year? [Do not round intermediate calculations. Round your answer to 2 de places} % b- If you believe in the expectations hypothesis, what is your best guess as to the expected value of the shortterm interest rate n- year? [Do not round intermediate calculations. Round your answer to 2 decimal places.) sum-tam mam _El

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