Assume the current spot rates are the following: 6-month rate is 1.5% 12-month rate is...
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Accounting
Assume the current spot rates are the following: 6-month rate is 1.5% 12-month rate is 2%. If the return-maturity Expectations Theory holds, the implied expected one-period spot rate in one period from now is ____.
A.
Between 1.5% and 2%
B.
Larger than 2%
C.
Smaller than 1.5%
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