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Which answer is correct? If the one-year spot rate is 1.8 per cent, and two-year spot rate is 2 per cent, the expectations theory of
Which answer is correct?
If the one-year spot rate is 1.8 per cent, and two-year spot rate is 2 per cent, the expectations theory of the term structure predicts that
the one-year spot rates one year from now will be:
a) 1.80
b) 1.9
c) 2.0
d) 2.2
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