Multiple Choice
According to the expectations theory of the term structure of interest,if the 1-year bond rate today is 6% p.a.and the 3-year bond rate today is 7.5% p.a. ,what is the 2-year bond rate next year?
A) 7.25%
B) 7.75%
C) 8.25%
D) 8.75%
Correct Answer:
Verified
Correct Answer:
Verified
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