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You also observe a 2-year US Treasury bond selling at par with the following characteristics: Face value of $1,000 and annual coupon of 10%. Under

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You also observe a 2-year US Treasury bond selling at par with the following characteristics: Face value of $1,000 and annual coupon of 10%. Under the expectations theory, what is the implied one-year Treasury rate for the second year (in %s) ? From Prior: You observe a one-year discount US Treasury bond in the market with the following characteristics: Face Value of $100 and Price of $95

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