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You observe the following yield curve for risk-free government zeros: Years to Maturity Yield 1 4% 3 5% 5 6.5% 10 7% 15 8.75% Assume

You observe the following yield curve for risk-free government zeros:

Years to Maturity Yield
1 4%
3 5%
5 6.5%
10 7%
15 8.75%

Assume the expectations hypothesis for the term-structure of interest rates holds in this economy. What is the expected interest rate for 5 year debt in 10 years? Please choose the answer that is closest to the correct answer.

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