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48. Suppose that nominal interest rate on a one-year risk-free Treasury bill is 2.0 percent...

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Finance

48. Suppose that nominal interest rate on a one-year risk-free Treasury bill is 2.0 percent and the rate on a comparable two-year Treasury note is 1.8 percent. What is the expected interest rate for year 2, that is, what is the 12 month rate that is expected in the seconds year.

a, 3.8%

b. 1.8%

c. 1.9%

d. 2.0%

E.1.6%

e. 3.0%

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