Question: A 2-year, zero-coupon bond offers 8% per annum while a 1-year, zero coupon bond offers 6%. Should the expectations hypothesis hold, what will be the

A 2-year, zero-coupon bond offers 8% per annum while a 1-year, zero coupon bond offers 6%. Should the expectations hypothesis hold, what will be the one-year rate on bonds one year from now?

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