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You want to invest some of your money for the next two years. Assume you can invest in a one-year government bond at 1%, or

You want to invest some of your money for the next two years. Assume you can invest in a one-year government bond at 1%, or a 2-year government bond for 1.6%. Approximately how high would the one-year rate have to be one year from now in order for you to be better off investing in the one-year 1% bond?

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