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Compute the expected interest rates

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Reference no: EM13805897

Suppose current interest rates on Treasury securities are as follows:

1 year 1.0

2 years 2.0

3 years 1.8

Using the expectations theory, a) compute the expected interest rates (yields) for each security one year from now, b) what will the rates be two years from today?

Reference no: EM13805897

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