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You note in The Wall Street Journal the following information about the yield curve: One year spot rate of interest: 6.00%; two year spot rate:
You note in The Wall Street Journal the following information about the yield curve: One year spot rate of interest: 6.00%; two year spot rate: 7.50%. According to the expectations hypothesis, what is the one-year forward rate for the period beginning one year from today, i.e. 2R1 ? 10.2 percent 7.6 percent 8.6 percent 9.0 percent
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