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johnpaul92 johnpaul92
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A one-year bond has an interest rate of 5% today. Investors expect that in one year, a one year bond will have an interest rate equal to 7%. According to the expectations theory of the term structure of interest rates, in equilibrium, a two-year bond today will have an interest rate equal to
A) 5.5%.
B) 6.0%.
C) 3.0%.
D) 5.0%.
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Macroeconomics

Macroeconomics


Edition: 8th
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supamansupaman
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johnpaul92 Author
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#2
8 years ago
This answers my question, thank you so much
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