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What is the markets forecast

Question: One-year Treasury bills yield 6 percent, while Treasury notes with 2-year maturities yield 6.7 percent. If the expectations theory holds (that is, the maturity risk premium is zero), what is the market`s forecast of what 1 year T-bills will be yielding one year from now?

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Finance Basics: What is the markets forecast

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Finance Basics: What is the markets forecast

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