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Y5 Suppose that interest rates for one-year are expected to follow this pattern:%3 today, 5% one yar from now, and 7% two years fron now.
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Suppose that interest rates for one-year are expected to follow this pattern:%3 today, 5% one yar from now, and 7% two years fron now. Whar are the current interest rates ontwo-year and three year bondsi according teh expectations theory?
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