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  3. 9 suppose the interest rate on a 1 year t bond is

9 Suppose the interest rate on a 1 year T bond is 4 0 and...

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9 Suppose the interest rate on a 1 year T bond is 4 0 and that on a 2 year T bill is 7 0 Assuming the pure expectations theory is correct what is the market s forecast for 1 year rate 1 year from now

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