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Title: Assume the current one-year interest rate on a bond is 3%, and the one-year expected rate a year fro Post by: NYC on Jan 12, 2016 Assume the current one-year interest rate on a bond is 3%, and the one-year expected rate a year from now is 7%. According to the expectations theory of the term structure of interest rates, the two-year interest rate is:
A) 10%. B) 5%. C) 4%. D) 6%. Title: Re: Assume the current one-year interest rate on a bond is 3%, and the one-year expected rate a year Post by: Jesslyn on Jan 15, 2016 Content hidden
Title: Re: Assume the current one-year interest rate on a bond is 3%, and the one-year expected rate a year fro Post by: NYC on Jan 28, 2016 Good answer, thanks.
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