Suppose the expectations hypothesis is true. The current rate of return on a one-year bond...
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Finance
Suppose the expectations hypothesis is true. The current rate of return on a one-year bond is 2%, and the current rate of return on a 2-year bond is 1.5%. What is the expected rate of return next year on a one-year bond?
0.5%
1.5%
1%
2%
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