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dewsae dewsae
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3 years ago
Assume that the expectations theory holds. The yield on a 1-year bond is 6% and the expected future spot rate (next year) is 8%. What is the yield on the 2-year bond?

▸ 6.5%

▸ 7.0%

▸ 7.25%

▸ 7.5%
Textbook 
Corporate Finance Online

Corporate Finance Online


Edition: 2nd
Authors:
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longleggedlouilongleggedloui
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3 years ago
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dewsae Author
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3 years ago
You make an excellent tutor!
nadiia
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Yesterday
Good timing, thanks!
AlahuKakpar
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2 hours ago
Thank you, thank you, thank you!
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