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The spots rates are 6.35% one year, 5.66% two year. 5.33% three years. assume yield...

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Finance

The spots rates are 6.35% one year, 5.66% two year. 5.33% three years.

assume yield curve explained by pure expectations theory.

what is expected one- year rate two years from now?

5.07%

4.37%

4.77%

5.37%

4.97%

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