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Author Question: Assume the current one-year interest rate on a bond is 2%, and the one-year expected rate a year ... (Read 73 times)

MirandaLo

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on: Apr 19, 2019

Question 1

Assume the one-year interest rate on a bond is 8% and the expected one-year rate a year from now is 12%. According to the expectations theory of the term structure of interest rates, the two-year rate will be


◦ 8%.
◦ 10%.
◦ 12%.
◦ 22%.

Question 2

Assume the current one-year interest rate on a bond is 2%, and the one-year expected rate a year from now is 3%. According to the expectations theory of the term structure of interest rates, the two-year interest rate is


◦ 2%.
◦ 2.5%.
◦ 3%.
◦ 5%.
Principles of Economics ¦ Case, Fair, Oster ¦ 12th Edition
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Marked as best answer by MirandaLo on Apr 19, 2019

gabrielle_lawrence

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Reply #1 on: Apr 19, 2019
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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MirandaLo

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Reply #2 on: Apr 19, 2019
Excellent


gabrielle_lawrence

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Reply #3 on: Apr 19, 2019
Great! Please up vote :D


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