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4. Pure expectations theory: Three-year bonds is expected to pay the one-year forward rate two...

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4. Pure expectations theory: Three-year bonds is expected to pay the one-year forward rate two years from now. (Hint: Assume that 2-year bonds and 3-year bonds both yield 9.000\%.) If the annualized interest rate on a three-year bond is 9 percent, the forward rate of a one-year security beginning two years from now is percent

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