Multiple Choice
According to the expectations theory of the term structure of interest,if the 1-year bond rate today is 7% p.a.and the 1-year bond rate in one year's time is 9% p.a. ,what is 2-year bond rate today?
A) 6%
B) 7.5%
C) 8%
D) 10%
Correct Answer:
Verified
Correct Answer:
Verified
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