Question: Question 5 Term Today 1 2% 2 3% 3 4% Based on the term structure above, according to the Expectations hypothesis, the market expects the

Question 5

Term Today

1 2%

2 3%

3 4%

Based on the term structure above, according to the Expectations hypothesis, the market expects the 1 year rate in 2 years to be

Group of answer choices

5.01%

4.05%

6.03%

4.01%

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