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What is the approximate expected annual interest rate

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Question 1: The interest rate on one-year Treasury securities is 3% per year and the interest rate on three-year Treasury securities is 5% per year. What is the approximate expected annual interest rate on two-year Treasury securities one year from now?

1) 5.0% 2) 5.5% 3) 6.5% 4) 6.0% 5) 4.5%

Reference no: EM132653100

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