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Suppose people expect the interest rate on one-year bonds for each of the next four...

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Finance

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Suppose people expect the interest rate on one-year bonds for each of the next four years to be 455 and if the expectations theory of the term structure of interest rates is correct, then the implemterest rate on bonds with a maturity of four years is 15% (Round your response to the nearest whole number) Refer to the figure on your right Suppose the expected interest rates on one-year bonds for each of the next four years are 4%, 5%, 6%, and 7%. respectively 1.) Use the line drawing tool to plot the yield curve generated. 2.) Use the point drawing tool to locate the interest rates on the next four years. Interest Rate 2 Carefully follow the instructions above and only draw the required objects. Click the graph choose a tool in the palette and follow the instructions to create your graph

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