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You know that the yield on a 7-year bond is 12% while the yield on a 3-year bond beginning 7-years from now is 5%. If
You know that the yield on a 7-year bond is 12% while the yield on a 3-year bond beginning 7-years from now is 5%. If you believe in the expectations theory, what should be the yield on a 10-year bond if the investment begins today? A. 12.00% B. 9.85% C. 9.55% D. 8.44%
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