Suppose the interest rate on a 1-year T-bond is 4.5% and that on a 4-year...
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Suppose the interest rate on a 1-year T-bond is 4.5% and that on a 4-year T-bill is 5.5%. Assuming the pure expectations theory is correct, what is the market's forecast for 3-year rates 1 year from now? 5.83% O 5.73% O 5.63% O 5.93% O 6.03%
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