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17-12-2022
Business

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2. (2 points) assume that the unbiased expectations hypothesis is true. suppose the current one-year interest rate is 2%, and suppose the yield of a two-year bond is currently 3%. what is the market expectation of the one-year interest rate for next year? (a) around 1% (b) around 2% (c) around 3% (d) around 4%

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