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You find that the yield on a 4-year bond is 8% while that of a 3-year bond is 7%. What should be the yield on
You find that the yield on a 4-year bond is 8% while that of a 3-year bond is 7%. What should be the yield on a 1-year bond beginning 3 years from now as predicted by the expectations theory? A. 1.00% B. 7.50% C. 9.34% D. 11.06%
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