Unbiased expectations theory suppose we observe the
Unbiased Expectations Theory Suppose we observe the following rates: the interest rate for the next year is 6% and the one-year interest rate expected one year from now is 9%. What is the annual interest rate on a two-year loan?
7.5%
8.5%
9.0%
15.5%
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suppose national bank offers to lend you 10000 for one year at a nominal annual rate annual percentage rate of 800 but
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