Question: today. Both options should yield the same result if the market is in equilibrium; otherwise, investors would buy and sell securities until the market was

today. Both options should yield the same result if the market

today. Both options should yield the same result if the market is in equilibrium; otherwise, investors would buy and sell securities until the market was in equilibrium. Quantitative Problem: Today, interest rates on 1-year T-bonds yield 1.7\%, interest rates on 2-year T-bonds yield 2\%, and interest rates on 3-year T-bonds yield 3.5\%. % % %

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