Based on expectation theory, if the interest rate for a 3-year bond is 8% and the interest
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Based on expectation theory, if the interest rate for a 3-year bond is 8% and the interest rate on a 1-year bond right now is 9%, a one year bond a year from now is 9%, what is the expected one year bond interest rate 2-years from now?
Answer this questions using the simplified averaging assumption from page 95.
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Related Book For
Foundations of Finance The Logic and Practice of Financial Management
ISBN: 978-0132994873
8th edition
Authors: Arthur J. Keown, John D. Martin, J. William Petty
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