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One-year T-bill rates are 2% currently If interest rates are expected to go up after three years by 2% every year what should be the required interest rate on a 10-year bond issued today

One-year T-bill rates are 2% currently. If interest rates are expected to go up after three years by 2% every year, what should be the required interest rate on a 10-year bond issued today? Assume that the expectations theory holds.

Jun 16 2020 Read more Less More

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