Question: A client is considering a 1 year bond with a 6% interest rate. He also notes that there is a 2 year bond with an

A client is considering a 1 year bond with a 6% interest rate. He also notes that there is a 2 year bond with an 8% interest rate. What rate of interest 1 year from today for a 1 year bond would make him indifferent between the two options based on the expectations theory. Explain your answer.

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