Assume that the expectations theory holds

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Assume that the expectations theory holds, and that liquidity and aturity risk premiums are zero, If the annual rate of interest on a 2year Treasury bond is 8 percent and the rate on a 1-yearTreasury bond that is issued today is 6 perecnt , What rate of interes should your expect on 1-year Treasury bond issued one year from now?

Reference no: EM131054844

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