If three-year securities are yielding at 6% and two-year securities are yielding at 5.55, what...

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Accounting

  1. If three-year securities are yielding at 6% and two-year securities are yielding at 5.55, what is the expected one-year rate two years from now implied by the two actual rates above?

    1. 4.7

    2. 5.8

    3. 6.5

    4. 7.0

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