Question: According to the expectations hypothesis, What do you expect theinterest rate on a two-year bond to be three years from now? Thecurrent interest rates for
According to the expectations hypothesis, What do you expect theinterest rate on a two-year bond to be three years from now? Thecurrent interest rates for different maturities are as follows:
| Maturity | Rate |
|---|---|
| 1-year | 3.00 |
| 2-year | 3.50 |
| 3-year | 3.75 |
| 4-year | 4.00 |
| 5-year | 4.00 |
Enter your answer as a percent without the % sign. Round yourfinal answer to two decimals.
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