The interest rate on one year treasury bonds is 1 the rate
The interest rate on one year treasury bonds is 1%. the rate on 2 year t-bonds is .9%. the rate on 3 year t-bonds is 1.1%. Using the expectations theory compute the expected one year interest rate in the second year and the third year.
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the interest rate on one year treasury bonds is 1 the rate on 2 year t-bonds is 9 the rate on 3 year t-bonds is 11
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