Looking at the current yield curve you see the following spot rates: one year 6.39%, two...
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Looking at the current yield curve you see the following spot rates: one year 6.39%, two years 5.99%, and three years 5.68%. If you assume that the yield curve is best explained by the "pure expectations theory," what is the expected one-year rate two years from now? Looking at the current yield curve you see the following spot rates: one year 6.39%, two years 5.99%, and three years 5.68%. If you assume that the yield curve is best explained by the "pure expectations theory," what is the expected one-year rate two years from now?
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