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  3. 2. the interest rate on one-year treasury bonds is

2. The interest rate on one-year Treasury bonds is 1.0 percent, the rate on two-year...

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Accounting

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2. The interest rate on one-year Treasury bonds is 1.0 percent, the rate on two-year T-bonds is 0.8 percent, and the rate on three-year T-bonds is 0.7 percent. Using expectations theory, compute the expected one-year interest rates in a. The second year (Year 2 only) b. The third year (Year 3 only)

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